SK Hynix Market Cap Surpasses $680 Billion as KOSPI Breaks 7,300 for First Time

Key facts

• KOSPI index surpassed 7,300 points for the first time.
• SK Hynix market capitalization exceeded $680 billion.
• Eugene Securities initiated coverage on SK Hynix with a target price of 2.3 million won.
• Samsung Electronics and SK Hynix shares surged 9% to 11%.
• Both SK Hynix and Samsung Electronics hit record highs.
• Positive developments in the Middle East and AI concepts drove the rally.
• Nomura raised operating profit forecasts for SK Hynix, citing long-term supply agreements.
• Goldman Sachs expects favorable price trends for all major SK Hynix products.

Seoul's Record Rally

South Korea's KOSPI index shattered the 7,300-point barrier for the first time in history, propelled by a surge in technology stocks. The benchmark closed at a fresh all-time high, capping a rally that has seen the index climb more than 20% this year. The surge was led by the country's two largest memory chip makers, SK Hynix and Samsung Electronics, which both hit record highs. The rally comes amid a global boom in artificial intelligence, which has driven demand for high-bandwidth memory chips used in AI servers. SK Hynix, the world's second-largest memory chip maker, has been a key beneficiary, with its stock price more than doubling over the past year.

SK Hynix Crosses $680 Billion Market Cap

SK Hynix's market capitalization surpassed $680 billion, making it one of the most valuable companies in Asia. The milestone follows a series of bullish analyst reports. Eugene Securities initiated coverage on the stock with a target price of 2.3 million won, implying further upside of about 15% from current levels. The company's shares rose 11% on the day, outperforming Samsung Electronics, which gained 9%. Analysts attribute SK Hynix's relative strength to its dominant position in high-bandwidth memory, a critical component for AI accelerators.

Analyst Upgrades and Price Targets

Nomura raised its operating profit forecasts for SK Hynix, citing long-term supply agreements that support high profitability. The brokerage expects the company's earnings to benefit from stable pricing and volume growth. Goldman Sachs echoed the optimism, stating that all major SK Hynix products are likely to maintain favorable price trends over an extended period. Eugene Securities' initiation with a 2.3 million won target price adds to a growing chorus of bullish calls. The stock currently trades at about 2.0 million won, leaving room for further gains if the target is met.

AI Boom and Geopolitical Tailwinds

The rally in Seoul was also supported by positive developments in the Middle East, which eased geopolitical tensions and boosted risk appetite globally. Investors have been rotating into risk assets as concerns over regional conflicts subside. At the same time, the AI theme continues to dominate market narratives. SK Hynix has been ramping up production of high-bandwidth memory chips to meet surging demand from AI server makers. The company recently announced plans to build its own AI infrastructure by purchasing AI servers, signaling confidence in the sector's long-term growth.

Samsung Electronics Lags Behind

While Samsung Electronics also hit a record high, its 9% gain lagged SK Hynix's 11% surge. The gap reflects Samsung's more diversified business, which includes smartphones and consumer electronics, where growth has been slower. Samsung's memory chip division, however, remains a key profit driver. Samsung is also investing heavily in AI-related chips, but its progress in high-bandwidth memory has been slower than SK Hynix's. The latter has secured early contracts with major AI companies, giving it a competitive edge.

What Lies Ahead for Korean Tech Stocks

The KOSPI's breach of 7,300 points has raised expectations of further gains, but valuations are becoming stretched. SK Hynix trades at over 30 times forward earnings, a premium that some analysts argue is justified by its AI exposure. Investors will be watching for quarterly earnings reports from both SK Hynix and Samsung Electronics in the coming weeks. Any disappointment could trigger a pullback. Meanwhile, the broader market will remain sensitive to geopolitical developments and central bank policies.

A New Era for South Korea's Market

The KOSPI's record high marks a symbolic milestone for South Korea's stock market, which has long been overshadowed by its peers in the US and Japan. The rally has been driven by a handful of tech giants, raising concerns about concentration risk. Yet for now, the momentum is firmly with the semiconductor sector. As AI continues to reshape the global economy, South Korea's memory chip makers are positioned at the center of the transformation. The question is whether they can sustain their lead.

The bottom line

• KOSPI closed above 7,300 for the first time, led by SK Hynix and Samsung Electronics.
• SK Hynix market cap exceeded $680 billion, with analysts setting target prices as high as 2.3 million won.
• AI demand for high-bandwidth memory is the primary driver of the rally.
• Nomura and Goldman Sachs have raised forecasts for SK Hynix, citing long-term supply agreements and favorable pricing.
• Samsung Electronics underperformed SK Hynix on the day, rising 9% versus 11%.
• Geopolitical easing in the Middle East contributed to the broader market optimism.