SK Hynix’s AI boom pushes valuation near $1 trillion
SK Hynix shares surged as investors bet on the company’s growing dominance in high-bandwidth memory powering AI infrastructure.
The artificial intelligence boom is creating a new class of technology giants, and memory chipmakers are suddenly among the market’s biggest winners.
On 27 May 2026, shares of SK Hynix surged sharply in Seoul, briefly pushing the company’s market valuation close to the $1 trillion mark, roughly Rs 83 lakh crore at current exchange rates.
Reports during the trading session suggested the stock climbed around 10% to 11% in a single day as investors doubled down on the company’s growing importance in the AI infrastructure race. Here's what you need to know!
AI demand is transforming memory makers
For years, semiconductor attention has largely focused on processors and graphics chips. But the rise of generative AI has dramatically increased demand for another critical component: high-bandwidth memory, commonly known as HBM.
HBM is designed to move enormous amounts of data extremely quickly between memory and AI processors. That speed is essential because modern AI models constantly process massive datasets during both training and real-time inference.
SK Hynix has emerged as one of the biggest beneficiaries of that demand. The company is a major supplier of HBM chips to NVIDIA, whose AI accelerators currently power many of the world’s largest AI data centres.
According to Counterpoint estimates, SK Hynix held roughly 57% of the HBM revenue market during the fourth quarter of 2025, placing it firmly at the centre of the AI supply chain.
Investors are betting on long-term AI growth
The latest rally builds on extraordinary momentum already seen across the stock. Reports indicate SK Hynix shares had already gained more than 200% during 2026 after surging 274% in 2025. The gains have been fuelled by strong AI server demand, tightening memory supply, and expectations that HBM demand could outpace production capacity for several years.
Analysts at Mirae Asset reportedly expect memory demand to exceed supply through at least 2028. That matters because tight supply conditions often support stronger pricing power and higher profit margins for semiconductor companies.
SK Hynix has also stated that it expects to double HBM sales during 2026 and suggested earlier this year that supply discussions with key customers were already largely finalised, giving investors greater confidence in long-term demand visibility.
Why HBM has become so valuable
Traditional memory chips store and transfer data horizontally across circuit boards. HBM works differently.
It stacks memory chips vertically and connects them directly to AI processors using hundreds of tiny data pathways.
This design dramatically increases data transfer speeds while reducing energy consumption. In practical terms, HBM allows GPUs and AI accelerators to run larger models faster and more efficiently.
That efficiency matters enormously because AI infrastructure consumes vast amounts of electricity and generates significant heat. Faster memory with lower power requirements can help reduce operational costs across massive AI clusters. As a result, demand for HBM has exploded globally.
South Korea is becoming central to the AI market rally
The rise of SK Hynix is also strengthening South Korea’s position at the centre of the global AI investment boom. Earlier this month, Samsung Electronics reportedly crossed the $1 trillion valuation mark as semiconductor stocks lifted the broader Korean market.
The country’s KOSPI index also crossed 7,000 for the first time during the AI-driven rally. Together, Samsung and SK Hynix are increasingly shaping how investors view South Korea’s role in the global technology supply chain.