SK Hynix joins US$1 trillion club on AI memory chip dominance

SK Hynix Inc reached a US$1 trillion market valuation following a 900% surge in its stock over the past year, positioning it as the leading supplier of high-bandwidth memory (HBM) chips essential for AI infrastructure. The company’s shares climbed 11% in a single day, making it the third Asian firm to hit the milestone after Samsung Electronics and Micron Technology. SK Hynix’s HBM chips, used by Nvidia Corp, have become a critical bottleneck for AI data center expansion, with supply shortages expected to persist through 2027. Analysts at Barclays expect SK Hynix to maintain its leadership in HBM, citing favorable pricing conditions and supply constraints. The company’s shares currently trade at six times forward earnings, though investors anticipate further growth, with some targeting a 10-times multiple. SK Hynix reported a five-fold increase in quarterly profit in April, forecasting sustained demand for HBM chips, which accounted for 57% of its global revenue share in late 2025, according to Counterpoint Research. The company is also pursuing a US listing for its American depositary receipts, which could attract American investors and further boost its valuation. Portfolio managers, including Richard Clode at Janus Henderson, attribute the surge in semiconductor stocks to strong AI demand, record margins, and long-term contracts securing future revenue. SK Hynix’s rapid rise reflects broader trends in the AI-driven tech sector, where memory chip shortages have granted unusual pricing power to suppliers. With Samsung and Micron trailing at 22% and 21% market share respectively, SK Hynix’s dominance in HBM production remains a key driver of its valuation growth.