At the close of trading on June 22, shares of South Korean memory chipmaker SK Hynix rose 5,6% to 2,9 million won, increasing the company's market capitalization to 2,080 billion won (1,350 billion USD). Meanwhile, Samsung Electronics shares fell 0,14%, bringing its market capitalization to 2,066 billion won, excluding preferred shares.

Consequently, SK Hynix surpassed its rival to become South Korea's most valuable listed company. Samsung had held this position since 2000.

The SK Hynix logo at its Icheon factory, South Korea on 23/4. Photo: Reuters

SK Hynix's stock has surged over 340% this year, making it one of the biggest beneficiaries of the global AI boom. The company is a primary supplier of high bandwidth memory (HBM) for AI systems used by companies like Nvidia and Google.

AI has reshaped the global semiconductor landscape, transforming memory chips from commodities into essential components for infrastructure that powers applications such as ChatGPT and other advanced AI models. SK Hynix focuses on memory chips, while Samsung also produces logic chips and consumer electronics like smartphones and TVs.

"The emergence of custom AI chips fundamentally changes the economic structure of this industry, helping SK Hynix achieve a leading position", said Kim Sunwoo, a senior analyst at Meritz Securities.

Samsung Electronics stated that its market capitalization, including preferred shares, currently stands at 2,246 billion won. Nevertheless, SK Hynix's achievement is considered one of the most spectacular comebacks in South Korean corporate history.

In 2002, Hynix Semiconductor, the predecessor of SK Hynix, faced potential acquisition by Micron after accumulating significant debt from rapid expansion. However, the deal ultimately collapsed, leaving the company under creditor control for nearly a decade.

In 2003, Hynix's stock price plummeted to just 135 won per unit. For many years thereafter, its business performance remained dependent on the boom and bust cycles of the memory chip industry.

Two years ago, a global decline in memory chip prices led SK Hynix to report an operating loss of 7,730 billion won. The company began its recovery a year later, driven by the accelerating AI wave and substantial investments from global technology giants. As a result, SK Hynix reported a record operating profit of 23,500 billion won in 2024.

Analysts attribute SK Hynix's success to its decision to continue investing in HBM during the memory chip industry downturn. By 2025, SK Hynix had secured 61% of the global HBM market share, significantly outpacing Samsung with 17% and Micron with 21%.

Ha Thu (according to Reuters, Yonhap)