The leader of the South Korean stock market has changed for the first time in 26 years. SK Hynix has overtaken Samsung Electronics, the long-standing market capitalization leader, to become the top stock on the KOSPI index for the first time in history. This shift is attributed to SK Hynix's dominance in the high-bandwidth memory (HBM) market, making it a major beneficiary of the semiconductor rally driven by artificial intelligence (AI). Anticipation of further stock price increases is growing as SK Hynix is set to list American Depositary Receipts (ADRs) next month.
According to the Korea Exchange, as of the close of trading on June 22, SK Hynix's market capitalization reached 2,080.3782 trillion won, surpassing Samsung Electronics, which had a market cap of 2,066.6594 trillion won (excluding preferred shares). The gap between the two companies is 13.7188 trillion won. This marks the first time SK Hynix has exceeded Samsung Electronics in market capitalization. Samsung Electronics first claimed the top spot in the domestic stock market on July 29, 1999, and had not relinquished it since November 21, 2000, aside from temporary fluctuations. SK Hynix's rise means the top position in the domestic stock market has changed after approximately 25 years and 7 months.
The market capitalization shift was driven by a 5.61% surge in SK Hynix's stock price, while Samsung Electronics saw a slight decline of 0.14%. Just a few months ago, such a reversal seemed unlikely. On the first trading day of the year, January 2, Samsung Electronics had a market cap of 760.6735 trillion won, compared to SK Hynix's 492.8576 trillion won, a difference of 267.8159 trillion won. The gap had widened to 525.4240 trillion won by February 27.
Analysts attribute the rapid change in rankings to the soaring demand for memory semiconductors in the AI era. While SK Hynix has emerged as a key beneficiary of increased AI investments with its focus on HBM, Samsung Electronics has a diversified business portfolio that includes smartphones, home appliances, and displays, which has diluted the recent strength of its semiconductor sector. Lee Kyung-min, an analyst at Daishin Securities, noted, "The upward momentum of SK Hynix, which has a higher concentration in memory semiconductors, has been particularly pronounced."
Market expectations are also rising quickly. iM Securities raised its target price for SK Hynix to 3.5 million won, while Hanwha Investment & Securities set the highest target among domestic brokerages at 4.3 million won.
* This article has been translated by AI.
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