Samsung Electronics Tops 1,500 Trillion Won in Market Value for First Time; SK Hynix Rises Above 1.6 Million Won

Samsung, SK Hynix Seen Posting Combined 573 Trillion Won in Operating Profit This Year

Shares of South Korea’s two biggest chipmakers, Samsung Electronics and SK Hynix, extended a record-setting rally. Easing tensions over a possible U.S.-Iran war and expectations for a prolonged semiconductor supercycle bolstered investor sentiment.

As of 9:29 a.m. on May 6, Samsung Electronics was trading at 258,500 won, up 26,000 won, or 11.18%, from the previous session. The stock climbed as high as 261,500 won intraday, setting another record, while its market capitalization surpassed 1,500 trillion won for the first time.

At the same time, SK Hynix was trading at 1.571 million won, up 124,000 won, or 8.57%. The stock rose as high as 1.62 million won during the session.

SK Square, SK Hynix’s intermediate holding company, also jumped as investors focused on the value of its stake. The shares were trading at 1.095 million won, up 104,000 won, or 10.49%, joining the ranks of so-called emperor stocks, or shares priced above 1 million won each.

The combined first-quarter operating profit of Samsung Electronics’ semiconductor business and SK Hynix exceeded 91.3 trillion won, fueling expectations that their annual combined operating profit could top 500 trillion won. Macquarie Securities projects the two companies’ combined operating profit will reach 573 trillion won this year.

Korea Investment & Securities forecasts Samsung Electronics will post 315.046 trillion won in operating profit this year and 454.998 trillion won next year. Mirae Asset Securities estimates SK Hynix’s annual operating profit at 279.2 trillion won and recently raised its forecast for next year to 459.3 trillion won from 415.5 trillion won.

Market research firm IDC said artificial intelligence is driving an unprecedented inflection point in the memory market. The shift marks a break from the industry’s historical pattern of boom-and-bust cycles driven heavily by consumer demand.

Lee Su, Hankyung.com reporter 2su@hankyung.com