AI chip demand boosts SK hynix toward trillion-dollar valuation

Staff Reporter: PNN

South Korean chipmaker SK hynix is rapidly moving toward a trillion-dollar market valuation as global demand for artificial intelligence technology continues to rise. A few weeks earlier, another Korean tech giant, Samsung Electronics, also crossed the same milestone.

According to market analysts, SK hynix’s share price has increased by more than 200 percent this year. Last year, its shares rose by about 274 percent. The main reason behind this surge is the rising demand for high bandwidth memory (HBM) chips used in AI servers, along with traditional memory chips.

Just 16 months ago, the company’s market value was less than 100 billion dollars, but it has now reached approximately 942 billion dollars. Analysts believe that if this trend continues, SK hynix will soon enter the trillion-dollar club.

If that happens, South Korea will become the first country outside the United States to have multiple trillion-dollar technology companies. Currently, Taiwan’s chipmaker TSMC is the most valuable company in Asia, with a market value of about 1.83 trillion dollars.

The global expansion of AI technology has significantly increased the importance of semiconductor companies. Experts say that while Silicon Valley tech firms face risks due to massive investments, chip manufacturers have become central to AI infrastructure.

South Korea’s KOSPI index has also shown strong performance this year, rising more than 86 percent—one of the biggest gains in decades.

Meanwhile, labor unrest at rival Samsung Electronics may also benefit SK hynix. Samsung’s labor union has announced an 18-day strike starting May 21 over bonus disparities. However, analysts warn that a prolonged strike could negatively impact the entire chip supply chain.

Experts believe that the rapid expansion of AI technology is taking Asia’s semiconductor industry to new heights, with South Korea playing a crucial role in this competition.