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SK hynix overtakes Samsung in market value amid AI-driven chip boom
A dealing room display at Hana Bank in Seoul shows the won-dollar exchange rate, KOSPI and the closing prices of SK hynix and Samsung Electronics, Monday. KOSPI closed at 9,114.55, up 62.13 points, or 0.69 percent, from the previous session, setting a record high on a closing basis. SK hynix also overtook Samsung Electronics to become the No. 1 company by market capitalization on the benchmark index. Yonhap
By Jun Ji-hye
KOSPI hits another record close above 9,100
SK hynix overtook Samsung Electronics to claim the top position on KOSPI by market capitalization on Monday, ending Samsung's reign of 25 years and seven months as the benchmark index's most valuable listed company.
KOSPI, meanwhile, edged higher to close above the 9,100 mark, setting a new record high on a closing basis.
According to the Korea Exchange, SK hynix recorded a market capitalization of about 2,080.38 trillion won ($1.35 trillion), surpassing Samsung Electronics’ 2,066.66 trillion won by about 13.72 trillion won on a closing price basis.
Samsung Electronics first claimed KOSPI's top spot by market capitalization on July 29, 1999, and had maintained its dominance uninterrupted since Nov. 21, 2000.
The change at the top comes amid a rally in the semiconductor sector fueled by surging demand tied to the artificial intelligence (AI) boom.
While both Samsung Electronics and SK hynix have benefited from the trend, SK hynix has delivered markedly stronger stock performance, ending Samsung's long-standing reign as the market's most valuable company.
Samsung's shares have risen nearly 200 percent so far this year, but SK hynix has far outpaced that gain with a rally of more than 340 percent over the same period.
During Monday's trading session, SK hynix extended its gains, rising 5.61 percent to close at 2,919,000 won. Samsung Electronics, by contrast, slipped 0.14 percent to end at 353,500 won.
SK hynix derives most of its revenue from memory semiconductors, including high-bandwidth memory (HBM), making it one of the biggest beneficiaries of the AI boom. Strong demand for AI servers and HBM has directly boosted the company's earnings prospects and valuation.
Samsung Electronics, on the other hand, has a much broader business portfolio encompassing smartphones, home appliances, displays and semiconductors. Market participants say this diversification has limited the extent to which the company can capitalize on the ongoing semiconductor upcycle.
Still, Samsung holds the edge over SK hynix in total market capitalization once its preferred shares, valued at about 184 trillion won, are included. SK hynix's market capitalization is composed entirely of common shares, as the company has not issued any preferred shares.
Hanwha Investment & Securities raised its target price for SK hynix by 164 percent to 4.3 million won, the highest target ever set for the company by a domestic brokerage house.
"SK hynix is evolving into a company capable of generating robust profits on a sustained basis," said Park Jun-young, an analyst at Hanwha Investment & Securities.
Park noted that Micron, which operates in the same segment of the semiconductor industry, trades at a price-to-earnings ratio of more than 10 times, while SK hynix is valued at just 6.6 times forward earnings over the next 12 months.
"The company is still not receiving even the baseline valuation multiples typically afforded to global technology firms," he said.
Another factor underpinning SK hynix's share price is growing anticipation over its planned American Depositary Receipt (ADR) listing in the United States later this year. The company moved a step closer to that goal in March by filing a registration statement with the U.S. Securities and Exchange Commission (SEC).
ADRs allow shares of foreign companies to be traded on U.S. stock exchanges, improving access for international investors and potentially broadening the shareholder base.
KOSPI opened 97.99 points, or 1.08 percent, lower at 8,954.43 and fluctuated between gains and losses throughout Monday's session before closing up 62.13 points, or 0.69 percent, at 9,114.55, setting a new record high on a closing basis.
The secondary Kosdaq likewise reversed early losses, rising after opening at 957.49, down 9.10 points, or 0.94 percent, from the previous session, to close at 968.40, up 1.81 points, or 0.19 percent.
In Seoul's foreign exchange market, the Korean won opened 3.9 won weaker at 1,530.9 per U.S. dollar compared with the previous session and extended its losses to finish onshore trading at 1,537.0, down 10 won from the previous close.