SK Hynix Shares Break 400,000 Level on OpenAI Deal

SK Hynix shares(000660.KS) experienced a significant surge in price, climbing 9.86% today, driven by the announcement of a strategic partnership with OpenAI. The stock broke through the 400,000 won mark for the first time during the day, as markets reacted bullishly on the news.

The stock reached an intraday high of 404,500 won before closing at 395,500 won, marking an impressive gain on the day. Year-to-date, the stock had already been in strong shape, with bulls seeing 127.43% since the turn of the year.

The partnership involves SK Hynix, alongside Samsung Electronics, supplying memory chips for OpenAI's ambitious $500 billion “Stargate” project. This initiative aims to enhance the United States' AI infrastructure by constructing advanced data centers. The collaboration includes plans to establish two AI data centers in South Korea, each boasting a 20-megawatt capacity, aligning with Seoul's ambition to become a leading AI hub in Asia.

This collaboration is expected to drive significant demand for high-bandwidth memory (HBM) chips, alleviating concerns regarding potential price declines due to heightened competition. Analysts at KB Securities have suggested that the strategic alliance could positively influence U.S.-South Korea trade negotiations, given the project's strategic importance and backing from U.S. President Donald Trump.

The announcement triggered a broad rally in South Korean markets. SK Hynix's shares initially jumped over 12% to reach an all-time high, while Samsung Electronics also saw gains, climbing more than 4% to its highest level since January 2021. This surge contributed to the benchmark KOSPI index rising over 3% to a record high.

The partnership underscores the vital role of HBM technology in AI applications, given its ability to efficiently handle massive data processing workloads. SK Hynix and Samsung collectively dominate the global HBM market, holding approximately 80% of the market share.

This partnership not only solidifies their positions as primary suppliers in the world's largest AI infrastructure initiative but also highlights South Korea's strategic importance in the global semiconductor supply chain.