SK chief says SK hynix shares likely to trend upward on strong memory chip demand
SK Group Chairman Chey Tae-won, center, who also serves as chairman of the Korea Chamber of Commerce and Industry (KCCI), speaks during a forum hosted by the KCCI on the southern island of Jeju, Friday. Yonhap
SK Group Chairman Chey Tae-won said Friday that shares of chipmaker SK hynix Inc., a key affiliate of his group, are likely to trend upward over the long term, citing sustained demand for memory chips.
Chey, who also serves as chairman of the Korea Chamber of Commerce and Industry (KCCI), made the remarks during a forum hosted by the KCCI amid heightened volatility in the chip giant's shares.
"I don't know where the stock price will be next month, but holding onto the shares rather than buying and selling them frequently is a good way to preserve your wealth," Chey said.
Shares of SK hynix listed on the benchmark Korea Composite Stock Price Index (KOSPI) have nearly tripled since the beginning of the year, although they have recently shown heightened volatility. The shares tumbled 11.53 percent to close at 1,842,000 won (US$1,243) on Thursday.
"Memory chips will continue to be needed, so their value will trend upward over time," Chey added.
SK hynix established its leadership in the high bandwidth memory (HBM) market by moving early into the technology and becoming a key supplier to Nvidia Corp. as demand for artificial intelligence (AI) accelerators surged.
The strategy delivered record earnings and enabled the company to overtake longtime rival Samsung Electronics Co. to become Korea's most valuable listed company by market capitalization for the first time in 25 years.