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SK Hynix share price performance over the past five years (Source: Google Finance)
Dominant areas
The Korean giant has long profiled itself as the leading manufacturer of key memories with the DRAM label, where it managed to leapfrog Samsung in terms of sales for the first time in the first quarter of 2025, thus appropriating a DRAM market share of 36%. Of course, the company does not forget about the diversification of the product portfolio, and thus the sources of income, and it is undoubtedly worth mentioning the 70% share of the HBM memory market.
With such a majority stake, SK Hynix is not only a leader, but also a key supplier for technology giants such as Nvidia, which ultimately, thanks to advances in artificial intelligence in recent years, represents a long-term stable demand for SK Hynix solutions. Of course, the company is aware of its strength, which is why the aforementioned construction of the largest data center in South Korea was announced.
Cooperation with Amazon
SK Group, the parent company of SK Hynix, chose Amazon for this project, specifically its cloud division Amazon Web Services, known as AWS. In addition, the construction is strategically planned in the city of Ulsan, because such a large-scale project will require a significant supply of electricity, which will be covered by the SK Gas power plant.
Competition and market position
When evaluating individual stock titles, it is also important to evaluate the closest competition, which in this case is Samsung. Above in the text, we mentioned surpassing Samsung in terms of DRAM revenue, but the story is far from over. Samsung's market capitalization has recently fallen to a 9-year low, so the difference in the dynamics of the share price of these two semiconductor industry players is clear. SK Hynix is reaching new absolute highs, while Samsung has been losing for a long time.
What does Wall Street say?
Given all these factors, analysts at leading investment banks based on Wall Street, such as Morgan Stanley, are raising their estimates of future profits for SK Hynix, which would undoubtedly help the rising share price even more. Following this, the company is expected to continue to maintain its strong position, with the greatest growth potential still lying in its ability to respond to the expanding AI market. [1]
Conclusion
In recent years, SK Hynix has been a prime example of a technology leader that not only adapts to current trends, but above all determines their future direction, especially in the field of semiconductors and artificial intelligence. Ultimately, this represents an opportunity for investors to tap into the potential of a company with a solid foundation, at the forefront of technical innovation.
* Historical figures are not a guarantee of future returns.
[1] Forward-looking statements represent assumptions and current expectations that may not be accurate or are based on the current economic environment, which is subject to change. These statements do not guarantee future performance. Forward-looking statements involve risk and uncertainty by their nature because they relate to future events and circumstances that cannot be foreseen, and actual developments and results may differ materially from those expressed or implied in any forward-looking statements.
Warning! This marketing material is not and should not be construed as investment advice. Data relating to the past are not a guarantee of future returns. Investing in foreign currency can affect returns due to fluctuations. All securities trades can lead to both profits and losses. Forward-looking statements represent assumptions and current expectations that may not be accurate or are based on the current economic environment, which is subject to change. These statements do not guarantee future performance. InvestingFox is a trademark of CAPITAL MARKETS, o.c.p., a.s., regulated by the National Bank of Slovakia
Resources:
https://www.cnbc.com/2025/06/17/sk-hynix-shares-extend-gains-on-ai-data-center-plans.html
https://www.koreatimes.co.kr/economy/20250616/samsung-electronics-market-cap-falls-to-9-year-low
https://www.kedglobal.com/tech,-media-telecom/newsView/ked202506160002
https://en.yna.co.kr/view/AEN20250616004500320?section=k-biz/corporate
