SK Hynix’s stock is trading at remarkably low levels—around five times next year’s earnings—even after revenue soared by 257%. The discrepancy underscores the memory chip sector’s vulnerability to sudden swings in market demand.

Some of the world’s biggest memory makers are enjoying a market rally, driven by surging demand for artificial intelligence. As SK Hynix Inc. and Samsung Electronics log double-digit gains, industry observers are watching how smaller chip players – particularly penny stocks – could follow suit.

SK Hynix has vaulted into the exclusive 200 trillion won market cap club, doubling its value in just 18 months and signaling a shift in the semiconductor industry. Driven by its leadership in high-bandwidth memory technology, the company has also overtaken Samsung in global DRAM market share for the first time.