SK hynix Joins the Trillion-Dollar Club on AI Chip Fever — But Can the Memory Giant Sustain a 250% Rally Built on a Single Product?
Shares surged as much as 14.9% intraday on May 27, crowning SK hynix as the newest member of the $1 trillion valuation club and making it the world's 12th most valuable company. At its peak, the chipmaker's total market value hit a record 1,680 trillion won — roughly $1.12 trillion. The stock has since pulled back 2.7% to $1,280, but the broader question for shareholders is whether a company riding one extraordinarily hot product cycle can hold this altitude.
• A Single Chip Type Is Doing All the Heavy Lifting
Counterpoint Research data show SK hynix commanded 57% of global high-bandwidth memory (HBM) revenue as of last year's fourth quarter — the specialized, vertically stacked memory chips that sit inside Nvidia's AI processors. In Q1 2026, the company reported total sales of ₩52.6 trillion, three times higher than the previous year, with a 72% profit margin. That concentration is a gift when demand is booming, but it makes earnings fragile if AI infrastructure spending slows.
• Supply Shortages Are Keeping Prices — and Profits — Unusually High
Memory chip prices doubled during the first quarter and may rise another 60% in the following quarter because of supply constraints. SK hynix itself has said demand for HBM would outpace supply for at least the next three years.
SK Group's chairman stated the global chip wafer shortage is likely to persist until 2030, with a projected shortfall exceeding 20%. For now, this is a seller's market, and that pricing power flows directly to the bottom line.
• Earnings Are Actually Growing Faster Than the Stock Price Despite a ~250% year-to-date rally, one strategist at KB Financial highlighted that earnings upgrades are outpacing the stock's gains, arguing SK hynix's valuation has become "cheaper" as analysts raised forecasts faster than share prices increased.
Bank of America calls this a "supercycle similar to the boom of the 1990s" and named SK hynix its global memory industry "Top Pick."
• The Next Test Is Whether the Product Pipeline Holds
Competition from Samsung and Micron is increasing, especially for next-generation HBM4 chips.
SK hynix's leadership in current-generation memory is expanding to next-gen HBM4, having secured the world's first mass production system last September. A potential U.S. listing via depositary receipts could unlock a new pool of investors, but also increases scrutiny. The trillion-dollar milestone is earned — sustaining it requires the AI spending wave to keep breaking records.