AI Memory Demand Lifts SK Hynix Market Value to 79% Of Samsung Electronics
Samsung Electronics and SK hynix. (Photo courtesy of techovedas.com)
Riding the artificial intelligence (AI) semiconductor supercycle, SK Hynix is fiercely chasing Samsung Electronics, the top market capitalization stock on the KOSPI.
According to the Korea Exchange on May22, the market capitalization of SK Hynix stood at 1,383 trillion won (approximately $922 billion) based on the closing price on May 21, growing 9.47 times compared to 146 trillion won a year ago. During the same period, the market capitalization of Samsung Electronics only increased 5.31 times, from 330 trillion won to 1,751 trillion won.
Accordingly, the market capitalization of SK Hynix, which was at the 44% level of Samsung Electronics, has now risen to the 79% level of Samsung Electronics. Analysts interpret that the corporate value gap between the two companies is rapidly narrowing amid the expansion of the AI memory market.
The securities industry analyzes that AI benefits are being concentrated on SK Hynix due to its business structure.
The business structure of SK Hynix is centered on memory semiconductors. With memory product lines such as DRAM, NAND, and High Bandwidth Memory (HBM) as its mainstays, the expansion of AI server investments and the increase in HBM demand directly lead to a rise in performance and corporate value.
On the other hand, Samsung Electronics is evaluated to have its AI memory boom effects relatively dispersed due to its diverse business portfolio encompassing smartphones, home appliances, foundry, and system semiconductors. In the case of Samsung Electronics, the profitability burden in the foundry and system design (LSI) sectors is acting as a valuation discount factor.
The performance gap is also narrowing rapidly. According to the financial information provider FnGuide, the estimated net profit consensus for the two companies this year is 287 trillion won for Samsung Electronics and 211 trillion won for SK Hynix, with the net profit of SK Hynix standing at the 73.5% level of Samsung Electronics.
The estimated net profit consensus for next year is 360 trillion won for Samsung Electronics and 278 trillion won for SK Hynix, and it is forecast that the net profit of SK Hynix will rise to the 77.2% level of Samsung Electronics.
In particular, the operating profit margin forecast for SK Hynix this year recorded 78.1%, ranking first globally. It surpassed Nvidia (66.2%), Aramco (57.3%), TSMC (57.3%), and Samsung Electronics (50.8%).
Kim Dong-won, a researcher at KB Securities, explained, “The operating profit of SK Hynix this year is expected to be at the world’s fourth-largest level, but its operating profit margin is forecast to rank first globally,” adding, “The business structure of SK Hynix is highly likely to evolve into a foundry type with a pre-order and post-production structure, which is forecast to act as a core driver for valuation re-rating through the reduction of profit volatility and the expansion of performance visibility.”
The AI semiconductor supercycle is also affecting the landscape of KOSPI market capitalization rankings. Companies related to AI, semiconductors, and power infrastructure have stood out over the past year.
SK Square (156 trillion won), the largest shareholder of SK Hynix, was outside the top 30 in market capitalization just a year ago, but has now climbed to third place in KOSPI market capitalization.
Samsung Electronics Preferred Stock (151 trillion won) also jumped from ninth to fourth place. Hyundai Motor (136 trillion won) rose from eighth to fifth place, riding the physical AI frenzy.
Samsung Electro-Mechanics (89 trillion won, 7th), which is receiving expectations of benefiting from AI infrastructure, Samsung Life Insurance (71 trillion won, 8th), the largest shareholder of Samsung Electronics, HD Hyundai Heavy Industries (71 trillion won, 9th), which emerged as a beneficiary of the US shipbuilding revival project ‘MASGA’, and Doosan Enerbility (69 trillion won, 10th) newly entered the top 10.
Companies that were within the top 10 a year ago, such as Samsung Biologics (65 trillion won, from 3rd to 13th), Hanwha Aerospace (64 trillion won, from 5th to 14th), KB Financial Group (58 trillion won, from 6th to 16th), and Kia (66 trillion won, from 9th to 12th), were pushed out of the top 10 in market capitalization.
Kim Eun-jin
댓글
0