The semiconductor giant's stock hits record high driven by AI demand and strong earnings expectations
Category: Business
SK Hynix (SK하이닉스) saw its stock price soar to a record high on May 4, 2026, as the company’s shares surged past the 1.4 million won mark for the first time. By 11:40 AM, the stock had increased by 10.42% to reach 1,420,000 won, marking a historic milestone for the semiconductor giant.
The rise in SK Hynix's stock is attributed to a combination of factors, including strong earnings reports from global technology companies, heightened investor sentiment surrounding artificial intelligence (AI) investments, and a general bullish outlook on the semiconductor market. As of this morning, the company’s market capitalization exceeded 1,000 trillion won ($758 billion), making it the second-largest listed company on the KOSPI index, following Samsung Electronics.
The surge in share price comes on the heels of a positive trend in the Philadelphia Semiconductor Index, which recorded increases of 2.26% and 0.87% on April 30 and May 1, respectively. This upward momentum reflects broader gains in the tech sector, particularly in the aftermath of reports indicating strong earnings from major U.S. tech firms, which have been investing heavily in AI infrastructure.
Analysts from Yuanta Securities have raised their target price for SK Hynix to 2.3 million won ($1.74 million), citing expectations for a substantial increase in operating profit. They predict that the company’s operating profit will reach 257 trillion won ($194 billion) in 2026 and soar to 409 trillion won ($310 billion) in 2027, representing year-over-year growth rates of 442% and 59%, respectively.
According to the latest financial reports, SK Hynix achieved an operating profit of 37.6 trillion won ($28.5 billion) in the first quarter of 2026, a staggering 96% increase from the previous quarter. The company’s D램 (DRAM) and NAND flash memory operating margins are estimated at 78% and 52%, respectively, with the general D램 operating margin reaching an industry-leading 86%.
Market experts note that the increasing demand for AI memory solutions is a key driver behind the stock's performance. Kim Sun-woo, an analyst at Meritz Securities, remarked, "The expansion of AI applications is elevating the status of memory manufacturers, and we anticipate a supply shortage in memory products by 2027 due to rising server demand." This sentiment is echoed by other financial institutions that have also adjusted their projections upward, with Daol Investment & Securities raising its target price from 1.6 million won to 2.1 million won.
In addition to these projections, SK Hynix is reportedly reviewing its investment strategy for its new memory production facility in Cheongju, M15X. The company is considering shifting its focus from primarily producing 1b DRAM to a mixed structure that includes 1c DRAM, which is expected to cater to next-generation AI memory demands.
As of the latest trading session, foreign and institutional investors have shown a strong preference for SK Hynix, with foreign purchases reaching 2.8 trillion won ($2.1 billion) and institutional purchases amounting to 1.6 trillion won ($1.2 billion). Meanwhile, individual investors have been taking profits, selling off 4.3 trillion won ($3.3 billion) worth of shares.
In light of these developments, the strong interest from foreign investors and the anticipated growth in AI memory demand have positioned SK Hynix as a focal point in the semiconductor market. The company’s ability to adapt its production strategies to meet changing market needs is likely to play a key role in its continued success.
With a promising outlook for the semiconductor industry, particularly in AI applications, SK Hynix appears well-poised for future growth. Investors and analysts alike will be closely watching the company's forthcoming quarterly reports and strategic announcements related to its production capabilities.
As the market evolves, SK Hynix is scheduled to release its second-quarter earnings report, projected to show revenues of 82.3 trillion won ($62.5 billion) and an operating profit of 63.7 trillion won ($48.3 billion), affirming its leading position in the semiconductor sector.