[Market Focus] SK Hynix Rises Over 3% on Nvidia-Led Rally

Shares of SK Hynix and other semiconductor stocks are showing strength in the domestic stock market on the morning of May 14, following a sharp surge in the share price of Nvidia, the leading company in artificial intelligence (AI) semiconductors. With concerns over tariffs easing somewhat due to the US-China trade agreement, the announcement overnight that Nvidia plans to sell a large volume of its latest AI chips to Saudi Arabia is being credited with improving overall investor sentiment toward semiconductor stocks.

As of 9:50 a.m. on this day, SK Hynix shares are trading at 206,000 won per share, up 3.78% from the previous session. Samsung Electronics is also up 0.7%, trading at 57,300 won. Techwing has risen 4.54%, Hanmi Semiconductor is up 1.48%, and EO Technics is also showing gains of over 1%, reflecting a general upward trend among semiconductor stocks.

This is analyzed as the aftermath of Nvidia CEO Jensen Huang announcing that the company will sell more than 18,000 units of its latest AI chip, the 'GB300 Blackwell,' to Saudi Arabian firm Humane. Following this news, Nvidia's share price on the New York Stock Exchange on May 13 (local time) surged by 5.63%. Other semiconductor stocks such as Broadcom (4.89%), ASML (1.83%), and AMD (4.01%) also jumped sharply.

In addition, relief that tariff uncertainties have peaked, thanks to a US-China trade agreement that exceeded market expectations, has further fueled the rally in semiconductor stocks. The United States has decided to lower tariffs on Chinese goods from 145% to 30% and grant a 90-day grace period. China, in turn, will reduce tariffs on US goods from 125% to 10%.

Domestic securities firms are also maintaining a positive outlook on SK Hynix. In a report released on this day, Daol Investment & Securities stated, "From the second quarter, AI-related demand trends are likely to become more concrete, centered on Nvidia. As a core value chain in AI hardware (HBM), SK Hynix's position will once again come into the spotlight," maintaining its top pick rating for the sector.

Heungkuk Securities also commented, "SK Hynix is maintaining its lead over competitors at the forefront of HBM and DRAM manufacturing, which justifies its valuation premium," assigning a 'Buy' rating and setting a target price of 280,000 won. Heungkuk Securities estimated that SK Hynix's market share in the HBM segment reached 68% in the first quarter.