Shares of SK Hynix jumped 15% after rival Samsung Electronics projected significantly stronger-than-expected quarterly earnings, reinforcing optimism across the memory chip sector.
Samsung forecast an eightfold increase in first-quarter operating profit, driven by surging demand for artificial intelligence infrastructure and a tightening supply of memory chips. The announcement has raised expectations that SK Hynix will report similarly strong results when it releases its earnings later this month.
Analysts have already revised forecasts upward. Korea Investment & Securities increased its full-year operating profit estimate for SK Hynix by 28%, citing stronger-than-anticipated price increases in both DRAM and NAND memory.
The rally in SK Hynix shares outpaced gains in both Samsung and the broader South Korean market, reflecting investor confidence in the company’s positioning within the AI-driven semiconductor cycle. SK Hynix is the world’s second-largest memory chipmaker, closely trailing Samsung.
The surge highlights the impact of the ongoing AI boom on semiconductor demand. Data centers, cloud providers and AI model developers continue to require large volumes of high-performance memory, pushing prices higher and improving margins for chipmakers.
Market sentiment suggests that the current upcycle—often described as a “supercycle”—may persist in the near term, although investors remain cautious about potential risks such as geopolitical tensions and fluctuations in demand.
