SK Hynix Shares Hit Two-Decade High
Shares of South Korea's semiconductor giant SK Hynix surged to their highest level in over 20 years on Tuesday. The rally came after reports surfaced that SK Group, the parent company, is set to construct the nation's largest artificial intelligence (AI) data center in collaboration with Amazon Web Services (AWS) in Ulsan.
Strong Momentum Driven by AI Boom
SK Hynix’s stock has climbed nearly 50% year-to-date, riding the wave of growing AI technology demand. On Tuesday alone, shares advanced by nearly 3%, building on gains from the previous trading day. This upward momentum underscores investor confidence in the company’s strategic position in the AI supply chain.
Details on the AI Data Center Project
The planned facility, reportedly spearheaded by SK Telecom and SK Broadband with support from other group affiliates including SK Hynix, will mark a significant investment in AI infrastructure. Leveraging AWS's cloud expertise, the initiative aims to bolster South Korea's data processing capabilities and position SK Group at the forefront of AI innovation.
SK Hynix’s Semiconductor Edge
SK Hynix is well-known as a major supplier of dynamic random access memory (DRAM), essential for everyday computing devices like PCs, servers, and workstations. Beyond traditional DRAM, the firm has gained a competitive edge in high bandwidth memory (HBM), specialized DRAM that powers AI servers.
Thanks to this strength, SK Hynix has captured approximately 70% of the global HBM market revenue share in the first quarter, outpacing competitors. This market dominance enabled SK Hynix to surpass Samsung in overall DRAM market share for the first time, claiming 36% compared to Samsung’s 34%.
Contrast with Samsung’s Market Position
While Samsung Electronics also saw its stock climb 4% on Tuesday, it continues to grapple with challenges in fully capitalizing on AI-driven demand. Recently, Samsung’s market capitalization dropped to a nine-year low at 345.1 trillion won (approximately $252 billion), reflecting pressures in the chip industry.
In contrast, SK Hynix’s leadership in HBM technology and its strategic alliances with AI powerhouses like Nvidia are propelling its expansion in the AI semiconductor space.
Looking Ahead
The upcoming AI data center project represents a pivotal step for SK Group to deepen its involvement in AI technology ecosystems. With semiconductor demand increasingly intertwined with AI advancements, SK Hynix appears well-positioned to leverage these trends for sustained growth.