South Korean memory chip maker SK Hynix has surpassed Samsung Electronics in market capitalization, becoming the country's most valuable publicly traded company as booming demand for artificial intelligence technologies continues to reshape the global semiconductor industry.

SK Hynix shares rose 5.6% on Monday, lifting the company's market value to 2,080.4 trillion won (approximately $1.35 trillion). Samsung Electronics shares, meanwhile, slipped 0.14%, leaving its market capitalization at 2,066.7 trillion won.

Samsung argued that its total market value reaches 2,246.4 trillion won when preferred shares are included. Nevertheless, the development marks the first time in more than two decades that Samsung has lost its position as South Korea's most valuable listed company.

The shift has been fueled by soaring demand for high-bandwidth memory (HBM) chips, a key component used in artificial intelligence systems.

SK Hynix has emerged as the leading supplier of HBM chips used in AI infrastructure developed by major technology companies, including Nvidia and Google. The company has become one of the biggest beneficiaries of the global AI investment boom.

Its shares have surged more than 340% over the past year, pushing its market value ahead of both Samsung Electronics and U.S.-based rival Micron.

Industry analysts attribute SK Hynix's success to its continued investment in HBM technology even during downturns in the semiconductor sector.

Unlike conventional memory products, HBM chips are designed to work directly with AI processors, offering significantly higher performance and profit margins.

According to industry estimates, SK Hynix controlled 61% of the global HBM market in 2025. Samsung held a 17% share, while Micron accounted for 21%.

The company's rise is widely viewed as one of the most remarkable turnaround stories in South Korea's corporate history.

In the early 2000s, then-Hynix Semiconductor faced severe financial difficulties and was at one point considered a takeover target for Micron. The company spent years under the supervision of creditor banks, while its shares fell to as low as 135 won in 2003, earning a reputation as a penny stock.

The rapid expansion of AI-related demand dramatically changed its fortunes.

After posting an operating loss of 7.73 trillion won in 2023, SK Hynix reported a record operating profit of 23.5 trillion won in 2024, driven largely by strong demand for AI-related memory products.

Analysts say that if current growth trends continue, SK Hynix could challenge not only Samsung's lead in market value but also its long-standing dominance as the world's largest DRAM producer, underscoring how the artificial intelligence boom is reshaping the global semiconductor industry.(ILKHA)