SK Hynix’s P/ E Leapfrog Over Samsung Caps a Week of Microsoft Deals and Intel Packaging Tests

For the first time in its corporate history, SK Hynix now commands a higher forward earnings multiple than Samsung Electronics — a symbolic milestone that underscores how dramatically the artificial intelligence memory boom has reshuffled South Korea’s chip hierarchy. The stock closed Wednesday at 1,976,000 South Korean won, good for a 7.68 percent daily gain and a fresh 52-week high, lifting the company’s market capitalisation to roughly 1,408 trillion won.

The immediate catalyst came from Redmond, where chief executive Kwak Noh-Jung sat down with Satya Nadella and Bill Gates at the Microsoft CEO Summit, a forum that runs until May 14. At the heart of the discussions is SK Hynix’s exclusive role as sole supplier of HBM3E memory for Microsoft’s Maia 200 artificial intelligence accelerator. That chip packs 216 gigabytes of capacity with 7 TB/s of bandwidth, a 30 percent performance improvement over its predecessor, and the partnership is expected to broaden into long-term supply contracts for standard DRAM and NAND flash products. Google and Amazon Web Services are already part of the same hyperscaler ecosystem.

The broader memory market has provided ferocious tailwinds. Since the end of September, NAND contract prices have surged 600 percent while DRAM prices have climbed 400 percent, and JPMorgan analysts believe those levels can persist into 2027 or 2028. Citigroup responded by lifting its price target on SK Hynix to 3,100,000 won, betting that the earnings momentum has further to run.

Should investors sell immediately? Or is it worth buying SK Hynix?

Market dominance is cemented by a 57 percent share of global HBM revenue, a lead that is widening rather than shrinking. Samsung, which holds just 22 percent, faces a potential blow on May 21 when its labour union has called a general strike — a walkout that TrendForce warns could push customers to shift orders to SK Hynix and Micron. The competitive gulf is also visible in hiring: more than 200 core developers have decamped from Samsung in recent months, lured by bonuses that more than double what the rival pays.

On the technology front, SK Hynix is testing Intel’s EMIB packaging as an alternative to TSMC’s heavily oversubscribed CoWoS platform. EMIB uses tiny silicon bridges embedded directly in the substrate to connect logic and memory dies, a cheaper approach that also mitigates thermal issues. The company is simultaneously spending $3.87 billion on its own facility in Indiana, scheduled to begin production in 2028.

The strength of the business model is visible in the first-quarter 2026 results: revenue reached 52 trillion won, operating profit nearly quadrupled year on year, and the operating margin hit 72 percent — a profitability level that even Nvidia would envy.

Yet risks are gathering. Rising oil prices and a political debate in Seoul over profit-sharing from AI windfalls could sour sentiment. More acutely, Samsung is racing to mass-produce HBM4 memory in the second half of this year; if it succeeds, SK Hynix’s grip on the market could loosen. The Korea Institute of Finance has raised its 2026 growth forecast for the country to 2.8 percent, pointing to semiconductor exports led by SK Hynix as the main driver. The question is how long the current pricing bonanza can last.

Ad

SK Hynix Stock: New Analysis - 14 May

Fresh SK Hynix information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.

Read our updated SK Hynix analysis...

en | KR7000660001 | HYNIX’S | boerse | 69329260 |