AI boom puts SK Hynix on cusp of US$1 trillion market value

SK Hynix is on the brink of surpassing a $1 trillion market valuation, following a dramatic surge in demand for AI-driven memory chips. The company’s shares have climbed more than 200% in 2026 after a 274% rise in 2025, fueled by strong orders for both conventional memory and high-bandwidth memory (HBM) chips used in AI servers. Its market cap reached approximately $942 billion by Thursday, up from under $100 billion just 16 months ago. If SK Hynix crosses the milestone, South Korea would become the first country outside the U.S. to have two trillion-dollar companies, joining Samsung Electronics, which hit the mark weeks earlier. Taiwan’s TSMC remains Asia’s largest company by market value at over $1.83 trillion. The trio’s success underscores their dominance in the AI supply chain, contrasting with Silicon Valley firms that spend heavily on chips, making them riskier investments. On Thursday, SK Hynix shares dipped slightly by 0.3%, while South Korea’s KOSPI index rose 1.75% to 7,981.41, marking an 86% gain this year and a 75% surge in 2025—the index’s best annual performance since 1999. KB Securities raised its year-end KOSPI target by 40% to 10,500, citing strong investor sentiment driven by AI-related stocks in Korea and Japan. Analysts suggest SK Hynix could benefit from Samsung’s labor disputes, including a planned 18-day strike by Samsung’s South Korean union starting May 21 if pay demands are unmet. The union, citing a bonus pay gap with SK Hynix, has called for negotiations, though talks stalled this week. While a strike might temporarily boost demand for rivals like SK Hynix, Micron, and TSMC, prolonged disruptions could strain the broader chip supply chain. South Korea’s Labour Commission urged both parties to resume talks, with a government-mediated session scheduled for Saturday. The situation reflects broader tensions in the semiconductor industry, where labor issues and AI demand are reshaping market dynamics.