SK Hynix joins Samsung in 200 trillion won market cap club

Key Takeaways:

• SK Hynix surpasses 200 trillion won market capitalization.
• Share price has surged 63% since the start of the year.
• Leads in high-bandwidth memory (HBM) technology, vital for AI.
• Overtakes Samsung in global DRAM market share with 36%.
• Analysts project continued growth due to high-performance chip demand.

SK Hynix Joins the 200 Trillion Won Club

SK Hynix Inc. has achieved a significant milestone, surpassing 200 trillion won ($147 billion) in market capitalization. On Tuesday, the company’s share price jumped 7.32%, closing at 278,500 won. This surge propelled SK Hynix into an exclusive club previously occupied only by industry giant Samsung Electronics Co.

A Meteoric Rise in Share Value

Year-to-date, SK Hynix’s share price has soared 63%, a remarkable feat compared to the 13.3% advance of Samsung Electronics and the Kospi index’s 30% spike since the start of the year. The company’s market capitalization now stands at 202.75 trillion won, effectively doubling in just one and a half years.

Leadership in High-Bandwidth Memory Technology

Central to SK Hynix’s impressive growth is its leadership in high-bandwidth memory (HBM) technology. In June 2022, SK Hynix became the world’s first company to mass-produce HBM3, supplying this fourth-generation memory exclusively to Nvidia Corp., the leading provider of AI accelerators. The company’s pioneering efforts continue with plans to commence mass production of HBM3E, the fifth generation of HBM, in 2024.

Overtaking Samsung in the DRAM Market

In a historic shift within the semiconductor industry, SK Hynix has overtaken Samsung in the global DRAM market. During the first quarter of this year, SK Hynix commanded a 36% market share, edging out Samsung’s 34%. This marks the first time SK Hynix has led in this critical sector, underlining its competitive prowess.

Analysts Predict Continued Growth

Analysts foresee SK Hynix’s upward trajectory continuing, buoyed by growing demand for high-performance DRAMs and NAND flash chips. The company’s advancements in memory technology position it favorably within an industry increasingly driven by artificial intelligence and data processing needs.

Positioned for an AI-Driven Future

The surging demand for AI accelerators has spotlighted companies like SK Hynix that provide essential components for these technologies. By solidifying its role as a key supplier of advanced memory solutions, SK Hynix is well-positioned to capitalize on the expanding AI market.

Conclusion

SK Hynix’s remarkable ascent reflects not only its strategic innovations in memory technology but also a broader shift in the semiconductor landscape. As the company continues to challenge industry norms and competitors, it stands at the forefront of an evolving market shaped by the relentless pace of technological advancement.