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SK
hynix joins Samsung, Micron in $1tr club
AI-driven rally pushes all three global
memory chipmakers above trillion-dollar mark
By Choi Yeon-jae, The Korea Herald - SK
hynix joined the $1 trillion market capitalization club on Wednesday, meaning
the world’s three largest memory chipmakers are now all valued at more than $1
trillion amid the AI-driven semiconductor rally.
As of afternoon trading, SK hynix shares
were up 11.94 percent, or 230,000 won ($153.39), at 2.27 million won. The stock
opened more than 11 percent higher and maintained strong gains throughout the
session.
At that level, SK hynix’s market
capitalization reached roughly 1,600 trillion won ($1.06 trillion), lifting the
company to 12th place globally by market value.
SK hynix became the second Korean
company after Samsung Electronics to surpass the $1 trillion milestone. Samsung
first crossed the threshold on May 6.
It is also the fourth Asian company to
reach the mark after TSMC, Saudi Aramco and Samsung Electronics, and the 15th
company globally.
The milestone means the world's top
three memory makers Samsung Electronics, SK hynix and Micron Technology are now
all valued above $1 trillion following a sectorwide rally fueled by AI
infrastructure spending.
The latest surge accelerated after
Micron shares jumped 19.29 percent overnight, pushing the US memory chipmaker
above the $1 trillion mark after UBS sharply raised its target price.
UBS said Micron was evolving from a
cyclical semiconductor company into a structurally higher-margin business,
reflecting broader changes underway across the memory industry.
Analysts said the sector, long known for
boom-and-bust cycles driven by supply-demand swings, is undergoing a structural
shift as AI demand tightens supply and increases long-term supply agreements
spanning three to five years.
Domestic brokerages are also rapidly
raising target prices for SK hynix.
On Wednesday, Mirae Asset Securities
maintained its “buy” rating on SK hynix while raising its target price by 18.8
percent from 3.2 million won to 3.8 million won.
The brokerage cited a broader global
re-rating of memory stocks, expansion of long-term supply agreements and strong
profitability.
“SK hynix’s 12-month forward
price-to-book and price-to-earnings ratios remain below the global memory
industry average,” said Kim Young-kyun, analyst at Mirae Asset Securities.
“Considering the long-term re-rating of
memory prices and strong return on equity, the company warrants a higher
valuation multiple,” he added.
Expectations for rising memory prices
are also fueling the rally.
Mirae Asset Securities forecast SK
hynix’s DRAM average selling price will rise 184 percent in 2026 and another 19
percent in 2027, while NAND prices are expected to climb 45 percent and 231
percent over the same periods.
The brokerage projected SK hynix’s
future revenue and operating profit at 366.5 trillion won and 289.8 trillion
won, respectively.
“Although the stock has already risen
sharply, there is still meaningful upside potential,” Kim said.
