SK hynix hits record $157B market cap
SK hynix’s market capitalization surged to an all-time high of 213 trillion won ($157 billion) on Thursday, buoyed by renewed investor optimism surrounding AI. The rally came as Nvidia reclaimed the top spot in global market capitalization following strong gains on Wall Street.
But U.S.-based Micron Technology ? another heavyweight in high bandwidth memory (HBM) ? also announced stronger-than-expected earnings, driven in large part by a sharp increase in sales of HBM for AI data centers. The stage is set for heightened competition between the two leading memory makers.
SK hynix joins 200 trillion won club
Shares of SK hynix finished up 2.8 percent on Thursday, hitting a new intraday high. With a market cap of 213 trillion won, the company solidified its position as the second-most valuable firm in Korea after Samsung Electronics.
The stock movement mirrored Nvidia’s 4.3 percent jump the day prior on the Nasdaq, where it closed at $154.31 ? a new record. The close alignment between the two stocks reflects investor recognition of SK hynix as a critical supplier of AI memory, much as Nvidia dominates the AI processor space.
Micron, the world’s third-largest memory chipmaker, reported third quarter revenue of $9.33 billion and an operating profit of $2.49 billion, both exceeding analysts’ expectations. Its earnings per share stood at $1.91.
Revenue was up 37 percent year-on-year, with sales of HBM rising more than 50 percent quarter-over-quarter, the company said.
"Our HBM is sold out for 2025," CEO Sanjay Mehrotra said during the earnings call. He also projected that HBM demand in fiscal 2026 will grow significantly faster than that for DRAM.
Micron plans to mass-produce HBM4, sixth-generation HBM technology, next year, having already provided samples to several customers, according to Mehrotra.
He added that customized HBM products tailored to specific AI accelerators will be introduced around 2028.
Customized HBM refers to high bandwidth memory designed for specific AI accelerators. At the bottom of the memory stack lies the base die, which houses the HBM controller ? a component that varies according to the needs of each client. That variability means memory makers must now excel not only in chip production but also in system-level design and advanced fabrication.
SK hynix, which sent HBM4 samples to clients earlier this year, has been collaborating with Taiwan’s TSMC on base die production.
Micron, meanwhile, has deepened its investment in Taiwan, where it opened a third building late last year and is now positioning the island as a key HBM production hub. In March, it added former TSMC chairman Mark Liu to its board of directors.
The Korean semiconductor industry is closely watching these developments, viewing them as a sign of closer Micron-TSMC alignment.
Production capacity still a weakness for Micron
Despite its technological progress, Micron still trails SK hynix and Samsung Electronics in market share. Industry insiders attribute this to the company’s cautious approach to expanding production.
“Micron tends to hold back on aggressive facility investments due to its ownership structure,” said one executive at a Korean memory firm. Major shareholders such as Vanguard, BlackRock and Capital Research prioritize risk-averse strategies, limiting the company’s capacity to scale quickly.
Even as Mehrotra emphasized strong HBM demand, he said the company would keep its capital spending at $14 billion this year ? including both HBM production and research and development (R&D).
Earlier this month, Micron announced it would invest a total of $200 billion in U.S. memory manufacturing and R&D over the next 20 years, an increase of $30 billion from its earlier plan.
In contrast, SK hynix benefits from strategic flexibility under its largest shareholder, SK Square, which holds a 20.7 percent stake. In the first quarter alone, SK hynix invested 7.43 trillion won in facilities and R&D ? double the amount from a year earlier.