The market capitalization of SK Hynix Inc., a South Korean semiconductor manufacturer, exceeded 100 trillion won on Wednesday following a significant rise in its share price. The company’s stock increased by as much as 11% during trading on the Korea Exchange, a development attributed by market reports to sustained investor demand for securities linked to the artificial intelligence sector.
The increase in valuation continues a trend for the company’s stock, which has risen approximately 250% since the beginning of the year. This performance coincides with high demand for high-bandwidth memory (HBM) chips, a component used in processors for AI applications. SK Hynix is a supplier of HBM chips to companies in the AI industry, including Nvidia.
On the same day, shares of Samsung Electronics, another major South Korean technology company, increased by over 6%. According to data from LSEG, the financial markets data provider, SK Hynix and Samsung Electronics together constitute more than 40% of South Korea’s benchmark Kospi index.
The Kospi index has seen substantial gains this year, reflecting the performance of its largest constituent companies. Some financial analysts have noted that the heavy concentration of the two chipmakers on the index could increase market exposure to fluctuations in the global semiconductor industry. These potential risks include supply chain issues or changes in investment for data centers.
The stock performance of both companies has been closely followed as an indicator of the broader market effects of investment in AI technologies. The event on Wednesday places SK Hynix among a small group of South Korean companies to reach the 100 trillion won market capitalization level.
