Samsung Electronics and SK hynix have both reached new record highs simultaneously. Samsung Electronics share price has recovered to 80,000 won (US$60) in approximately two years and three months, while SK hynix’s market capitalization approaches 130 trillion won. Expectations are rising for Samsung Electronics shares to reach 100,000 won and for SK hynix to reach 200,000 won, driven by forecasts that performance improvement will continue due to the recovery in the semiconductor market.
As of 11:40 a.m. on March 26, Samsung Electronics traded at 79,900 won in the KOSPI market, up 1,700 won, or 2.17 percent, from the previous day. It rose to a peak of 80,100 won during the trading session, surpassing the previous 52-week high of 79,900 won. This marks the first time Samsung Electronics’ stock price has reached the 80,000-won level during trading hours since Dec. 29, 2021, approximately two years and three months ago. The last time it closed in the 80,000-won range was on December 28, 2021, at 80,300 won.
SK hynix traded at 178,700 won, up 9,300 won, or 5.49 percent, from the previous day, hitting an all-time high. Its current market capitalization is around 129.2 trillion won. Foreign investors who have been actively buying semiconductor stocks this year continued to net purchase Samsung Electronics and SK hynix with 2.7 million shares and 387,000 shares, respectively, on the same day.
The strength in the semiconductor sector on this day is attributed to the significant uptick in the stock prices of key semiconductor companies like Micron in the U.S. market the day prior. Micron, a key player alongside Samsung Electronics and SK hynix in the memory trio, saw a 6.28 percent surge in the Nasdaq market a day earlier. Even in after-hours trading, it maintained strong momentum with gains around 1 percent. Nvidia also saw its stock price rise by 0.76 percent.
The main reason for the upward trend in performance is the recovery in the semiconductor industry. In particular, there has been an increase in demand for high-performance memory such as high bandwidth memory (HBM) due to the rising demand for artificial intelligence (AI) server usage. Micron’s recent strong performance is also attributed to the significant impact of increased HBM sales being reflected in its results.
Especially for SK hynix, which has a high proportion of memory products, it is expected to benefit the most from the recovery in the semiconductor industry. According to FnGuide, this year’s operating profit forecast for SK hynix is anticipated to reach 12.31 trillion won, marking a turnaround to profitability compared to the previous year. This figure is close to the operating profit in 2021, which was at 12.41 trillion won during the semiconductor boom.
Above all, investors are drawn to the fact that SK hynix currently holds overwhelming technological superiority in the HBM market. By supplying not only the 4th generation HBM3 but also the 5th generation HBM3E exclusively to Nvidia, SK hynix is outpacing its competitors. Despite the pursuit from Samsung Electronics and Micron, it is forecast that SK hynix’s dominance in the HBM market will continue for the foreseeable future.
Samsung Electronics has also experienced a sharp increase in its stock price recently as the supply of HBM to Nvidia becomes more apparent. Currently, Samsung Electronics remains undervalued compared to its competitors due to weakness in its HBM and foundry businesses. However, it is expected that some of these undervaluation factors will be mitigated once the performance of HBM starts to materialize.