SK Hynix Shares Hit New High as Impressive Rally Continues

SK Hynix (KRX:000660), a global titan in memory semiconductor manufacturing, is currently basking in the glow of a surging stock price, fueled by relentless demand for its high-bandwidth memory (HBM) chips that are the lifeblood of the artificial intelligence revolution.

SK Hynix share price today tested its recent high of ₩260,000 early in the trading session, before giving back some of the earlier gains into the close. Today's early boost came as news that the company's parent (SK Group) is set to embark on a partnership with Amazon Web Services (AWS) for the country's largest AI data center.

Today, the stock is trading at ₩249,000, marking a 0.40% jump in the last 24 hours, and a 5.51% rise over the past week. This upward trajectory reflects a broader trend: over the past month, SK Hynix shares have climbed an impressive 24.87%, whilst gains of 45% can be found since the start of 2025.

The driving force behind this stellar performance is SK Hynix's dominance in the HBM market, particularly its advanced HBM3E chips. As AI applications become increasingly sophisticated and data-intensive, the demand for high-performance memory solutions has exploded, positioning SK Hynix as a key beneficiary. The company's recent announcement of mass production for its 12-layer HBM3E chips has further solidified its competitive edge, drawing considerable investor confidence.

This strategic foresight was evident in the fourth quarter of 2024, when SK Hynix reported a staggering 2,236% year-on-year surge in operating profit, reaching ₩8.08 trillion ($5.6 billion). Revenue for the quarter also soared by approximately 75% to ₩19.8 trillion, with HBM chips accounting for a remarkable 40% of the company's total DRAM revenue.

However, the path ahead is not without its challenges. While SK Hynix currently holds the crown as the world's largest DRAM producer, surpassing Samsung Electronics with a market share of 36.9% in the first quarter of 2025, intense competition is brewing. Rivals like Micron Technology and Samsung are aggressively investing in HBM technology and ramping up production, threatening to erode SK Hynix's market share.

Micron has already begun mass production of its HBM3E solutions, and Samsung unveiled its development of HBM3E with the largest capacity in the industry. This intensifying competition has injected volatility into SK Hynix's stock, as investors remain wary of potential market share losses.

Adding to the uncertainty are broader geopolitical and economic factors. The Chief Financial Officer of SK Hynix has cautioned about potential demand uncertainties in 2025 due to inventory adjustments and geopolitical risks. Fears surrounding the growing capabilities of Chinese AI models, such as DeepSeek, also weighed on investor sentiment earlier this year.

Despite these headwinds, analysts remain largely optimistic about SK Hynix's prospects. The company's strong financial performance, technological leadership in HBM, and favorable industry trends continue to support a bullish outlook. The most recent quarterly EPS of ₩11,410 beat estimates by 70.73%, and the consensus EPS estimate for the next quarter is ₩8,650. The forecast EPS Growth of 26.79% also paints a promising picture for future earnings.

SK Hynix is riding high on the AI wave, driven by its dominance in the HBM market. However, investors should be aware of the challenges ahead, including intensifying competition and broader macroeconomic uncertainties. The company's ability to maintain its technological lead, manage costs effectively, and navigate the evolving geopolitical landscape will be crucial in determining its long-term success.