[Market Focus] SK Hynix Soars on Nvidia Rally and No.1 DRAM Market Share

On June 4, SK Hynix shares showed a strong performance of around 6% on the domestic stock market. This is analyzed as the result of a semiconductor stock rally triggered by Nvidia, which reclaimed the top spot in market capitalization on the New York Stock Exchange, combined with the positive news that SK Hynix surpassed Samsung Electronics to become the global leader in DRAM market share in the first quarter.

As of 9:40 a.m. on this day, SK Hynix shares were trading at 219,500 won per share, up 5.78% from the previous session. At one point early in the session, the stock price surged by about 7.5%.

This is seen as the result of strong performances by semiconductor stocks such as Nvidia on the New York Stock Exchange overnight. Nvidia's stock price jumped 2.80%, reclaiming the top spot in market capitalization for the first time in four months, supported by Wall Street's forecast that its gross profit margin will rise this year. Other semiconductor stocks such as Broadcom (3.27%), Micron (4.15%), and AMD (2.34%) also performed strongly, with the Philadelphia Semiconductor Index closing up 2.72%.

News that SK Hynix, which has taken the lead in the high bandwidth memory (HBM) market, ranked first in DRAM market share in the first quarter also acted as a positive factor. According to market research firm TrendForce, SK Hynix recorded sales of $9.72 billion in the first quarter of this year, down 7.1% from the previous quarter due to a decrease in DRAM shipments. However, for the first time on a quarterly basis, SK Hynix ranked first in the DRAM market. This is the first time SK Hynix has surpassed Samsung Electronics in DRAM market share. The shipment volume of HBM3E, a high value-added product, appears to have propelled SK Hynix to the top position.