AI demand drives SK hynix toward $1t

SK hynix, a South Korean memory chipmaker, was nearing a US$1 trillion market value on May 14 as AI demand pushed its market cap to about US$948 billion based on the previous close.

Its shares have risen more than 200% in 2026 after gaining 274% in 2025.

This growth was driven by demand for conventional memory chips and high-bandwidth memory chips used in AI servers.

Samsung crossed the US$1 trillion mark earlier in May.

If SK hynix follows, South Korea would become the first country outside the US with more than one trillion-dollar company.

The rally has also lifted the KOSPI, which is up more than 86% this year after rising 75% in 2025, while TSMC remains Asia’s most valuable listed company at more than US$1.83 trillion.

🔗 Source: Reuters

🧠 Food for thought

Implications, context, and why it matters.

SK hynix’s valuation rests on sold-out supply and strong profits

Record first-quarter results support the company’s valuation, including a 72% operating margin 1.
Demand is so high that SK hynix has sold out all planned memory chip output for 2026, while large tech companies are set to spend about US$650 billion on AI infrastructure this year 2.
One estimate puts SK hynix at about 70% of the High Bandwidth Memory (HBM) market 3.
The supply gap gives the company room to charge more, and customers now care more about securing enough chips than about price 1.

The AI boom’s profits are turning into a political target

Money flowing to companies such as SK hynix is drawing government scrutiny after a senior South Korean policymaker proposed a “citizen dividend” tied to extra tax revenue from the AI boom 4.
Markets reacted fast. The KOSPI fell 5.1%, and SK hynix shares lost 2.39%, underscoring political risk 4.
Pressure is also coming from labor groups, with unions at Samsung seeking bonuses equal to 15% of the chip division’s operating profit 4.
Debate over sharing AI gains may spread further. A New York state lawmaker also floated an AI-funded dividend 5.