20 years after near-collapse, SK Hynix overtakes Samsung to become the world’s most valuable memory chipmaker

SK Hynix overtook tech giant Samsung Electronics on Monday (June 22) to become South Korea’s most valuable listed company. The milestone is notable because its comes about 20 years after the chipmaker was sitting on the brink of total collapse.

Moreover, this shift unseats Samsung from a top spot it had held continuously since the year 2000, solidifying SK Hynix as the world’s most valuable memory chipmaker, according to a report by news agency Reuters.Driven by the global artificial intelligence (AI) boom, SK Hynix shares closed up 5.6%, lifting its market capitalisation to 2,080.4 trillion won ($1.35 trillion), edging past Samsung’s market value of 2,066.7 trillion won (excluding preferred shares).

Increased demand for memory for AI infrastructure

The global semiconductor landscape has been reshaped by AI with tech companies ordering High-Bandwidth Memory (HBM) chips in large quantities for AI infrastructure. SK Hynix has emerged as the premier beneficiary of this transition, riding a massive 340% stock rally this year. The company is now the dominant supplier of HBM chips – which stack memory vertically to deliver lightning-fast speeds and lower power consumption – supplying tech giants like Nvidia and Alphabet's Google.

Samsung, which also manufactures smartphones, TVs, and logic chips, pushed back against the calculation, stating that its market value should include preferred shares. By that metric, Samsung’s total value would stand higher at 2,246.4 trillion won. However, the common stock flip highlights a profound shift in investor sentiment.The rise of SK Hynix is remarkable. In 2002, then known as Hynix Semiconductor, the company accumulated debt during an aggressive expansion drive and was on the verge of being sold off to American rival Micron.

When the deal fell through, the company was left under creditor control for nearly a decade. In 2003, its stock bottomed out at just 135 won per share, earning it the label of a "Dongjeon-ju" (penny stock) in South Korea.Moreover, just last year, a downturn in the traditional tech market forced SK Hynix to report an annual operating loss of 7.73 trillion won. However, as major tech ginats like Microsoft, Meta, and Google began pouring billions into AI infrastructure, the company recovered aggresivly, posting a then-record annual operating profit of 23.5 trillion won in 2024.