SK Hynix's market value climbed to a record 1,680 trillion won, or about $1.12 trillion, on Wednesday after its shares rallied as much as 14.9% on strong demand for high-end memory used in AI applications. The surge makes SK Hynix the latest memory-chip manufacturer to breach the $1 trillion threshold, joining Samsung Electronics and U.S.-listed Micron Technology.
The jump in SK Hynix shares helped lift South Korea's benchmark KOSPI index to a record close, with the index rising as much as 5.09% to 8,457.09. The sharp moves also triggered a temporary algorithmic-trading curb, known locally as a "sidecar" mechanism.
Market dynamics behind the rally are centered on the memory segment supplying AI data centres. Demand for premium memory chips used alongside AI processors - such as those designed by Nvidia - has tightened available supply and driven prices higher. According to market data cited in the trading session, memory chip prices doubled in the first quarter from the prior period and are forecast to rise by up to 63% in the current quarter as AI data centre demand constrains supply for smartphones, laptops and automobiles. That pricing environment has helped leading memory producers report record profits.
Samsung crossed the $1 trillion market-value mark earlier in the month on May 6, and Micron reached the milestone on Tuesday. Including Taiwan Semiconductor Manufacturing Co., only three Asian companies have joined the $1 trillion club to date. South Korea now stands out as the first country outside the United States to host more than one company with that market valuation.
With the day's gains, Samsung and SK Hynix together represented roughly half of the KOSPI's market capitalisation. The KOSPI has been one of the global best performers amid the AI-related rally, rising 91% so far this year after a 76% gain last year.
Analysts have adjusted targets in response to the structural shift in demand. Kim Young-gun of Mirae Asset Securities said in a report that he expects memory demand to continue exceeding supply through 2028, which would sustain elevated price levels. He raised target prices by 18.8% for SK Hynix and by 14.6% for Samsung, to 3.8 million won per share and 550,000 won per share, respectively. SK Hynix shares traded around 2.3 million won during Wednesday's session.
Samsung shares also hit a fresh record high on Wednesday, rising as much as 8% to 323,000 won. The rise came after unionised workers in South Korea voted to approve a tentative wage deal, averting a strike that had posed a potential disruption to global chip supplies.
U.S. investment bank UBS said in a Tuesday report that it had more than tripled its target price for Micron, citing what it described as "the structural changes AI has driven to the entire memory complex." Performance this year has been dramatic: Samsung shares are up 149% year-to-date, SK Hynix shares have climbed 215%, and Micron shares have advanced 245%.
The rally has attracted heavy retail and ETF flows. In recent weeks, U.S. retail investors have poured billions into a newly launched exchange-traded fund that provides exposure to Samsung and SK Hynix. On Wednesday, the first South Korean single-stock leveraged ETFs tied to Samsung and SK Hynix posted double-digit gains on their market debut as semiconductor equities rallied.
The rush to access leveraged products briefly overwhelmed investor education infrastructure. Local media reported that the Korea Financial Investment Association's website - which hosts required online courses for retail investors to qualify for leveraged ETF trading - was briefly unavailable as investors tried to complete the courses.
Currency conversion used in market reporting was $1 = 1,507.8300 won.
Market context and implications
The confluence of constrained supply for high-performance memory and sharply rising demand from AI data centres has lifted valuations across the memory makers and concentrated market impact within South Korea's equity benchmark. The pricing rebound has translated into record profits and higher target prices from sell-side analysts, while investor appetite for leveraged exposure has intensified volatility in single-stock instruments.