Seoul: The market capitalization of chip giant SK hynix Inc. surpassed 200 trillion won (US$146.5 billion) for the first time Tuesday amid a rally in the South Korean stock market. Shares of SK hynix rose 7.32 percent to 278,500 won on the main KOSPI bourse, solidifying its position as the second-largest listed company in South Korea after Samsung Electronics Co.
According to Yonhap News Agency, SK hynix's market cap reached 202.7 trillion won, marking its first time above the 200 trillion-won threshold. The surge occurred as investors turned to semiconductor shares after eased tensions in the Middle East. This investor confidence was further bolstered by the announcement of a ceasefire between Israel and Iran by U.S. President Donald Trump, which ended their conflict.
The KOSPI index also saw significant gains, finishing at 3,103.64, up nearly 3 percent, and surpassing the 3,100-point mark for the first time in nearly four years. SK hynix shares have been on a steady upward trend, driven by the company's leadership in the premium high bandwidth memory (HBM) market. The company is set to start mass production of its sixth-generation HBM4 chips in the latter half of this year.
Analysts remain optimistic about SK hynix's future, citing its technological superiority in HBM and strong partnerships with major companies like Nvidia Corp. and TSMC. "SK hynix's leadership in AI chips has been firmly established," stated Ryu Hyung-geun, a researcher at Daishin Securities Co. He added that the company is expected to maintain a dominant market share in HBM4 due to its advanced technology and strategic collaborations.
In terms of financial performance, SK hynix is projected to achieve 20 trillion won in sales for the second quarter, reflecting a 22.5 percent increase from the previous year. Operating profit is estimated to reach 8.9 trillion won, representing a 64 percent rise.