SK Hynix shares surged as much as 11% on Wednesday, lifting its market capitalization above $1 trillion, as investors continued to buy artificial intelligence-linked semiconductor stocks. (26/05)

The stock later closed 9.21% higher, extending a strong rally driven by global demand for AI-related chips.

AI Semiconductor Demand Pushes SK Hynix Stock Higher

SK Hynix has seen its shares skyrocket about 250% since the start of the year, supported by strong demand for high-bandwidth memory chips used in AI servers and accelerators.

The company has become a key supplier to AI chip leader Nvidia, strengthening its position within the global AI semiconductor supply chain.

Investor appetite for AI-linked stocks has remained strong as demand for AI infrastructure continues to grow.

Samsung Electronics Also Crosses $1 Trillion Milestone

The rally comes shortly after domestic competitor Samsung Electronics also crossed the $1 trillion market capitalization mark.

Together, the two chipmakers account for more than 40% of South Korea’s benchmark KOSPI, highlighting the strong influence of semiconductor stocks on the index.

The KOSPI has nearly doubled since the start of the year, reflecting the surge in AI-related semiconductor demand.

Analysts Highlight Risks and Strong Earnings Momentum

Analysts have warned that the high concentration of chip stocks in the index could increase market volatility and exposure to risks such as supply chain disruptions and weaker global data center investment.

However, SK Hynix’s rally continues to receive support from strong earnings expectations, with analysts noting that earnings upgrades are outpacing share price gains.

Peter Kim, global investment strategist at KB Financial Group, said fundamentals remain strong and valuations of the “twin towers” are still intact, referring to SK Hynix and Samsung Electronics. He also noted that SK Hynix’s valuation has become “cheaper” as earnings forecasts rise faster than share prices.

PHOTO: AFP/GETTY IMAGES/JUNG YEON JAE

This article was created with AI assistance.

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