SK Hynix Shares Hit 20-Year High Amid SK Group AI Data Center Plans

SK Hynix shares have surged to a more than two-decade high, driven by strong demand for its advanced high-bandwidth memory (HBM) chips critical to AI applications. The company recently began mass-producing 12-layer HBM3E chips and has captured about 70% of the HBM market by revenue, helping it overtake Samsung Electronics as the world's largest DRAM producer with a 36.9% market share. SK Hynix's parent company, SK Group, plans to build South Korea's largest AI data center in partnership with Amazon Web Services, further boosting investor confidence. The firm's operating profits have soared, with a 2,236% year-on-year increase reported in Q4 2024 and expectations of continued growth supported by AI-driven demand. Meanwhile, Samsung's market cap has fallen to a nine-year low as it struggles to keep pace with SK Hynix's gains in the AI memory segment. Overall, SK Hynix is positioned as a key beneficiary of the AI boom, with robust earnings growth and strategic initiatives strengthening its competitive edge.