![\"](\"https:\/\/www.europesays.com\/korea\/wp-content\/uploads\/2026\/05\/nlb80skh.jpg\" "\\"SK")
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SK Hynix shares rose 10.4% to 1.4 million won (US$970) in morning trading on May 4 in Seoul, making it the second-largest company on the KOSPI by market value after Samsung Electronics.<\/p>\n
The rally followed gains in US chip stocks and improved sentiment after an analyst raised the company\u2019s target price to 2.3 million won (US$1,600).<\/p>\n
The broader semiconductor sector also strengthened, with the Philadelphia Semiconductor Index rising 2.26% on April 30 and 0.87% on May 1. Other SK Group affiliates joined the rally, with SK Square gaining more than 13% and SK rising 8.94%.<\/p>\n
Analysts attribute the bullish outlook to a structural shift in the memory market. Chipmakers are reallocating capacity from conventional DRAM\u2014widely used in PCs and servers\u2014toward higher-margin High Bandwidth Memory (HBM), which is critical for AI chips.<\/p>\n
Key Highlights<\/p>\n
\tSK Hynix stock surges 10.4% amid AI memory demand\tShift to HBM may tighten DRAM supply and raise prices\tLong-term deals with hyperscalers reshape chip market<\/p>\n
Also Read:\u00a0SK Hynix Shares Hit a Record High as AI Chip Demand Rises<\/a><\/p>\n This transition is already delivering strong profitability, with one major memory producer reporting operating margins as high as 72%.<\/p>\n However, the shift is tightening the supply of traditional memory, potentially driving up prices for consumer electronics such as smartphones and PCs. The supply-demand imbalance may persist, as new chip fabrication plants and advanced packaging facilities take years to build, with major capacity additions not expected until 2027 or 2028.<\/p>\n To manage demand, suppliers like SK Hynix and Samsung<\/a> are increasingly signing long-term agreements (LTAs) with hyperscalers such as Microsoft and Google. These multi-year contracts provide revenue visibility and stabilize supply, but may limit flexibility and lock in prices.<\/p>\n