SK Hynix Overtakes Samsung as South Korea's Most Valuable Company
SK Hynix overtook Samsung Electronics on Monday to become South Korea's most valuable listed company, with a market capitalization of 2,082.5 trillion won ($1.35 trillion). The shift is fueled by strong demand for its high-bandwidth memory (HBM) chips used in AI systems, propelling its shares up 340% this year.
Key Numbers
According to Reuters, SK Hynix overtook Samsung Electronics on Monday to become South Korea's most valuable listed company, marking a dramatic reversal of fortunes for a chipmaker that nearly collapsed under debt two decades ago.
Market Move Details
Shares of SK Hynix traded up 5.7%, bringing its market capitalization to 2,082.5 trillion won ($1.35 trillion) as of 0347 GMT, compared with a 0.4% gain in Samsung Electronics to 2,081.3 trillion won (excluding preferred shares).
Possible Reasons
The surge is attributed to SK Hynix's dominant position as a supplier of high-bandwidth memory (HBM) chips used in AI systems for customers such as Nvidia (NVDA) and Alphabet's Google (GOOGL). The company has been one of the biggest beneficiaries of the global AI boom, driving its shares up more than 340% this year.
Context
Two decades ago, SK Hynix was on the verge of collapse under debt, but it has now become the world's most valuable memory chipmaker by market cap, surpassing both Samsung and Micron Technology (MU).
Similar Moves in the Sector
In contrast, Samsung Electronics shares rose only 0.4%, highlighting the growing gap between the two companies in capitalizing on the AI boom.
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