"Semiconductor Leaders on the Rise"... Samsung Electronics and SK Hynix Both Hit New Annual Highs

As the KOSPI reached an all-time high, the share prices of the two leading semiconductor companies, Samsung Electronics and SK Hynix, also hit their highest levels of the year, continuing their strong upward momentum.

On September 18, Samsung Electronics closed at 80,500 won, up 2,300 won (2.94%) from the previous trading day. This marks the first time the closing price has returned to the 80,000-won range since August 16 last year, when it closed at 80,200 won. It has taken one year and one month for the stock to recover to the 80,000-won level. SK Hynix also set a new annual high, closing at 353,000 won, up 19,500 won (5.85%).

The share prices of Samsung Electronics and SK Hynix appear to have been influenced by expectations of an improvement in the semiconductor industry. Demand for artificial intelligence (AI) remains strong, and the memory sector is also showing signs of recovery.

Ryu Hyungkeun, a researcher at Daishin Securities, stated, "Semiconductor stocks have surged, and the virtuous cycle of AI is spreading to the general-purpose semiconductor market," adding, "This is due to the strengthened profit-generating capacity of the supply industry."

He continued, "As AI inference expands, shipments of general-purpose servers continue to rise. However, due to supply bottlenecks, the increased customer demand will be difficult to meet in the short term." He added, "The bargaining power of suppliers is increasing, and the price of general-purpose DRAM in the fourth quarter of this year is expected to rise by around 10% compared to the previous quarter."

The outlook for next year is especially positive. SK Securities predicts that Samsung Electronics and SK Hynix will form a two-strong structure in the high-bandwidth memory (HBM)4 market in 2026.

Han Donghee, a researcher at SK Securities, explained, "Nvidia's increase in HBM4 speed is disadvantageous to Micron, which focuses on power efficiency. This makes Samsung Electronics' entry, despite its cost disadvantage, even more visible."

He emphasized, "SK Hynix will continue to maintain its number one market share and differentiate its profitability based on proactive contracts, differentiated mass production, and reliability."