On Monday, Nvidia Corp (NASDAQ:NVDA) supplier SK Hynix briefly surpassed Samsung Electronics (OTC:SSNLF) to become South Korea’s most valuable listed company.
AI Memory Chip Demand Propels SK Hynix Past Samsung
Shares of SK Hynix surged 5.7% during trading, lifting the company’s market capitalization to about 2,082.5 trillion won ($1.35 trillion), narrowly edging past Samsung Electronics at 2,081.3 trillion won, Reuters reported.
The milestone marked a historic shift in South Korea’s corporate hierarchy, with Samsung having held the top spot since 2000.
At the time of writing, SK Hynix stock was trading 4.7% higher at KRW 2,894,000 (about $1,884) in Seoul while Samsung shares were up 0.14% at KRW 354,500 (about $230).
The rally comes as demand for advanced memory chips continues to soar amid massive investments in AI infrastructure by major U.S. technology companies.
SK Hynix has emerged as one of the biggest beneficiaries of the trend thanks to its leadership in high-bandwidth memory, or HBM, chips used in AI accelerators.
SK Hynix Emerges As A Major Winner Of The AI Boom
South Korean memory chipmakers have reported record profits as the rapid buildout of AI data centers has tightened supply and pushed memory prices higher.
Investor enthusiasm has been particularly strong for SK Hynix. The company’s shares have climbed more than 327% year-to-date, significantly outperforming Samsung Electronics, whose stock has gained roughly 175% over the same period.
The latest jump also reinforces SK Hynix’s growing importance in the AI supply chain.
The company is a key supplier of advanced memory products used alongside graphics processing units powering generative AI applications.
Trillion-Dollar Valuations Highlight Semiconductor Industry Shift
In May, SK Hynix joined Samsung Electronics and Micron Technology (NASDAQ:MU) in surpassing the $1 trillion market value threshold, reflecting investor confidence that AI-related spending will continue driving semiconductor demand.
At the time of writing, SK Hynix had an intraday market capitalization of approximately KRW 2,061.4 trillion, compared with Samsung Electronics’ KRW 2,324.6 trillion.
ETFS With South Korean Exposure
Among U.S.-listed ETFs with exposure to South Korean equities, the iShares MSCI South Korea ETF (NYSE:EWY) and Franklin FTSE South Korea ETF (NYSE:FLKR) count both SK Hynix and Samsung Electronics among their largest holdings.
In the iShares fund, SK Hynix and Samsung account for 25.97% and 23.69% of assets, respectively, while in the Franklin fund, they represent 34.05% and 20.33% of assets.
According to Benzinga Edge Stock Rankings, the iShares MSCI South Korea ETF ranks in the 97th percentile for Momentum, driven by strong performance across short, medium and long-term time frames.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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