SK Hynix hits $1 trillion valuation as AI boom lifts South Korean chip stocks

The rally extended a blistering run that has seen SK Hynix shares skyrocket about 250% since the start of the year, fueled by surging demand for high-bandwidth memory chips used in AI servers and accelerators.

The company has emerged as a key supplier to AI chip giant Nvidia, cementing its position at the center of the global AI supply chain.

The rally comes just weeks after domestic rival Samsung Electronics also crossed the $1 trillion market capitalization mark. Shares of Samsung Electronics added over 6% on Wednesday.

The two chipmakers account for more than 40% of South Korea’s benchmark Kospi, underscoring how closely the index’s performance has become tied to global demand for AI-related semiconductors and memory chips.

The Kospi index has nearly doubled since the start of the year, according to data from LSEG.

Analysts have warned that the concentration could heighten market volatility and leave the benchmark more exposed to risks, including supply chain disruptions and a slowdown in global data center investment.