SK Hynix Stock Overtakes Samsung to Become South Korea’s Most Valuable Company

TLDR

• SK Hynix surpassed Samsung Electronics today to become South Korea’s most valuable listed company, with a market cap of $1.35 trillion
• The stock is up more than 340% this year, driven by surging demand for its high-bandwidth memory (HBM) chips used in AI systems
• SK Hynix holds 61% of the global HBM market, far ahead of Samsung (17%) and Micron (21%)
• Samsung held the top spot since 2000, and argues its market cap should include preferred stock, putting it at roughly 2,252 trillion won
• SK Hynix is reportedly planning a US listing on the Nasdaq to broaden its investor base

SK Hynix surged 5.7% on Monday, pushing its market capitalisation to 2,082.5 trillion won ($1.35 trillion) and edging past Samsung Electronics — which gained just 0.4% — for the first time.

Samsung has held the top position since 2000. The gap between the two is razor thin, and Samsung argues that including its preferred stock would put its market cap at around 2,252 trillion won.

The milestone caps a remarkable run for SK Hynix, whose stock has rallied more than 340% this year.

The fuel behind that rally is HBM — high-bandwidth memory chips that stack vertically to deliver faster speeds and lower power consumption. These chips are essential components inside AI processors made by Nvidia and used by customers like Alphabet’s Google.

Unlike standard DRAM chips, HBM is tightly integrated with AI hardware. That creates higher barriers to entry and gives suppliers pricing power that generic memory never had. SK Hynix holds 61% of the global HBM market. Samsung sits at 17%, Micron at 21%.

From Penny Stock to $1.35 Trillion

The turnaround story here is hard to ignore. In 2002, then-Hynix Semiconductor was nearly sold to Micron after being buried in debt. The deal fell through, leaving it under creditor control for nearly a decade. By 2003, the stock had dropped to 135 won — a penny stock.

In 2023, a memory market downturn hit hard. SK Hynix posted an annual operating loss of 7.73 trillion won that year.

The company kept investing in HBM through the downturn — a bet that paid off. By 2024, it posted a record operating profit of 23.5 trillion won as AI spending from Microsoft, Google and Meta accelerated.

SK Group Chairman Chey Tae-won, who pushed through the original acquisition of Hynix despite strong internal opposition, described his vision in a book published in January.

Samsung’s DRAM Lead Is Narrowing

The gap between the two companies isn’t just about market cap. Samsung’s dominance in DRAM production is also under pressure.

Bank of America estimates SK Hynix’s monthly DRAM output will reach around 589,000 wafers this year, versus roughly 691,000 for Samsung. But SK Hynix is projected to expand output by 38% between 2025 and 2028, compared to about 17.5% growth at Samsung.

By 2028, that would narrow the production gap to under 10%, down from 23% in 2025.

SK Hynix is also reportedly planning a US listing on the Nasdaq, which would raise its profile further among global investors.

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