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The Economic Times
How SK Hynix's bet on a niche memory chip made it more valuable than Samsung
SK Hynix's rise to become South Korea's most valuable company showcases the impact of its 14-year bet on high-bandwidth memory (HBM) chips. This strategic pivot initially faced skepticism but has ultimately positioned the company as a vital player in the AI revolution, particularly by supplying HBM chips to Nvidia. Despite a stock market dip, SK Hynix's investments are expected to yield significant returns, reaffirming its market leadership and driving shares up over 340% this year.
MonitorConfidence: HighShort term horizon
Published 24 Jun 2026, 10:31 UTC6 min read
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Summary
TL;DR
- SK Hynix surpassed Samsung to become South Korea's most valuable company.
- Focus on high-bandwidth memory (HBM) chips positioned SK Hynix at the forefront of AI technology.
- Initial skepticism about HBM investments led to a significant market pivot.
- Nvidia relies on SK Hynix for crucial memory components in AI applications.
- SK Hynix's market cap surged, reflecting investor confidence in its growth strategy.
Interesting facts
- SK Hynix was once seen as a financially irresponsible acquisition before becoming a market leader.
- The company's substantial investment in HBM was initially considered a gamble but is now paying off.