In a historic shift, SK Hynix has surpassed Samsung Electronics to become South Korea's most valuable publicly traded company, propelled by its dominance in high-bandwidth memory (HBM) chips crucial for artificial intelligence. On Monday, SK Hynix's market capitalization hit 2,082.5 trillion won ($1.35 trillion), edging past Samsung’s 2,081.3 trillion won after a 5.7% daily gain. Samsung had held the top spot since 2000.
The milestone highlights the transformative power of AI spending. SK Hynix’s stock has rallied more than 340% this year, driven by its 61% share of the global HBM market, which supplies chips to companies like Nvidia, used by Google, Microsoft and Meta. Unlike standard memory, HBM is deeply integrated with AI hardware, creating high barriers to entry and giving suppliers significant pricing power.
Samsung, despite a 200% year-to-date gain, is showing signs of a catch-up. Bernstein analysis of South Korean export data from South Chungcheong Province—where Samsung packages HBM—points to a 79% month-over-month jump in HBM exports in May. A key “value per weight” metric rose 30%, which Bernstein attributes to a ramp-up of next-generation HBM4 products commanding higher prices. The firm forecasts Samsung’s Q2 2026 HBM revenue to rise 58% quarter-on-quarter, though it notes delays tied to Nvidia’s Rubin platform.
Meanwhile, SK Hynix’s export volumes dipped in May, but Bernstein still projects 25% quarterly HBM revenue growth. The company, which nearly collapsed in 2002 and was a penny stock in 2003, has staged a remarkable turnaround, posting a record 23.5 trillion won operating profit in 2024 after investing through a downturn. SK Group Chairman Chey Tae-won recently stated the vision was to make Hynix’s products “indispensable,” noting that replacing SK Hynix’s HBM with another product could impair AI system performance.
The competition is also narrowing in overall DRAM production. Bank of America estimates that by 2028, SK Hynix could close the output gap with Samsung to under 10% from 23% this year. Additionally, SK Hynix is reportedly planning a US Nasdaq listing to broaden its investor base, a move that could further raise its profile.
