South Korean tech giant on brink of $1 trillion value as AI chip demand goes into overdrive
SK Hynix is poised to become South Korea's second trillion-dollar company, riding a massive wave of demand for its specialised AI memory chips. The surge places the nation at the centre of the global AI boom, with the company's value skyrocketing in just over a year
South Korean memory chip maker SK Hynix is on the verge of topping a $1 trillion market value, just weeks after its rival Samsung Electronics crossed the same incredible milestone. The move would make South Korea the first country outside of the United States to host more than one company in the exclusive trillion-dollar club.
An unprecedented surge
The company’s rapid ascent is fuelled by the explosive global demand for artificial intelligence. SK Hynix shares have soared more than 200 per cent this year, following an eye-watering 274 per cent rise in 2025, according to a report from Reuters. For those unversed, the company was worth less than $100 billion just 16 months ago and is now closing in on the market value of retail giant Walmart.
This phenomenal growth is driven by demand for its high-bandwidth memory (HBM) chips, a critical component for the powerful servers that run AI applications. The demand is so intense that SK Hynix's entire production for 2026 is reportedly already sold out.
'FOMO' fuelling the market
Market analysts suggest a "fear of missing out" is gripping investors. "The market is running on FOMO sentiments, especially on AI-related names in Japan and Korea," Fabien Yip, a market analyst at IG, told Reuters.
This frenzy is a direct result of the so-called "AI arms race" among global tech giants like Microsoft, Google, and Amazon. These companies are pouring billions into building their AI capabilities, creating an unprecedented demand for the specialised hardware that SK Hynix produces. The company, which is a key supplier to AI chip designer Nvidia, is said to control over half of the critical HBM market.
The AI boom has completely reshaped the market, with some memory chip prices jumping by as much as 83 per cent in a single quarter earlier this year. The knock-on effect has seen South Korea's benchmark KOSPI stock index climb to record highs, attracting a flood of foreign investment.
With its pivotal role in the AI supply chain now firmly established, SK Hynix is investing heavily to maintain its lead. The company is accelerating the expansion of its production capacity, including building a new advanced packaging plant in the United States, which is expected to be operational in 2028.