Shares of South Korea’s SK Hynix have soared to a two-decade high.
This is fuelled by reports that its parent company, SK Group, is planning to build the country’s largest AI data centre. This is in partnership with Amazon Web Services.
The chipmaker, a key supplier of high-bandwidth memory (HBM) used in AI servers, has seen its stock climb nearly 50% this year, riding the wave of surging demand for AI-driven computing.
The planned AI data centre, set to be developed in Ulsan, is reportedly spearheaded by SK Telecom and SK Broadband. SK Hynix supports the role.
This move underscores SK Group’s aggressive push into AI infrastructure, positioning itself as a major player in the global semiconductor and cloud computing ecosystem.
SK Hynix’s dominance in HBM technology has been a key driver of its stock rally. The company captured 70% of the HBM market by revenue share in the first quarter.
Meanwhile, SK Hynix’s closest rival, Samsung Electronics, has struggled to capitalise on AI-led demand, with its market capitalisation recently sliding to a nine-year low of US$252 billion.
In contrast, SK Hynix has overtaken Samsung in the overall DRAM market for the first time. It secured a 36% global market share compared to Samsung’s 34%.
Investors are betting on SK Hynix’s continued leadership in AI memory solutions, particularly as demand for high-performance computing accelerates.
With AI adoption reshaping the semiconductor landscape, SK Hynix’s strategic positioning in the memory market could further strengthen its foothold.
The company’s ability to supply cutting-edge HBM chips to industry giants like NVIDIA has cemented its reputation as a critical player in AI-driven computing.
As SK Group moves forward with its AI data centre ambitions, investors will watch how this expansion translates into long-term growth for SK Hynix.
At the time of writing, SK Hynix Inc (KRX: 000660) was trading at KRW247,000 (A$277.31), down 2,000 (0.80%) today, with a market cap of around 180 trillion.
