SK Hynix shares surged 12.5% on Monday, hitting a record high as foreign investors piled into South Korean chipmakers following strong quarterly earnings from major U.S. tech companies. The rally was driven by renewed confidence that AI data center spending remains robust, with several U.S. tech firms reaffirming their capital expenditure plans for AI infrastructure last week.
SK Hynix, a key supplier of high-bandwidth memory (HBM) used in AI accelerators, has emerged as a clear beneficiary of the AI boom. Barclays raised its price target on SK Hynix’s Frankfurt-listed shares by over 20%, from €900 to €1,100, and lifted its target on Samsung’s London-listed stock from $4,000 to $4,250. Both stocks retained Overweight ratings. The bank noted that the supply-demand imbalance in the memory market “shows no signs of improving any time soon,” modeling global memory supply growth in the low twenties percent in both 2026 and 2027 but expecting demand to accelerate faster, leaving the gap unlikely to close in either year.
In contrast, Samsung Electronics underperformed, rising only 5.4% amid labor unrest. The company’s union held a large-scale protest on April 23 demanding a larger share of profits from the chip division. Samsung’s offer, which included bonuses and wage increases, was rejected. The union has now threatened an 18-day work stoppage starting May 21 if no deal is reached. This uncertainty is weighing on investor sentiment, even as AI memory demand remains strong. Citigroup has lowered its expectations for Samsung, citing potential costs from concessions or bonus schemes that could squeeze margins.
SK Hynix, having already resolved its own profit-sharing dispute with employees, benefits from labor stability, giving it a competitive edge over Samsung. Other regional chipmakers, including MediaTek and ASE Technology Holding, also saw stronger price performance on Monday as AI chip sentiment improved. Barclays flagged China as a risk to watch, noting that Chinese memory players are expanding capacity and gaining ground in mid-to-low end smartphones, though it does not see this affecting the data center segment.
