By Kwanwoo Jun


Shares of SK Hynix, a high-bandwidth-memory product supplier for AI chip giant Nvidia, hit a record high Tuesday after rising for a second straight day.

The South Korean memory chip maker's rally signals market expectations for another strong quarter of growth, following above-consensus first-quarter results on continued artificial intelligence-driven demand for advanced and powerful computing chips.

The rally also points to investor confidence in SK Hynix dominating the higher-end HBM market and continuing to have an edge over rivals Samsung Electronics and Micron Technology.

SK Hynix's stock rose as much as 4.8% to 260,000 won, equivalent to $191.26, early Tuesday and changed hands at more than 250,000 won for most of the session, beating its previous record intraday high of 248,500 won on July 11.

That's the first time that SK Hynix shares topped the 250,000-won intraday level since the company was integrated into SK Group in 2012.

Shares ended Tuesday's session 0.4% higher at a record closing high of 249,000 won.

Investors have recently piled into SK Hynix following a series of upbeat second-quarter outlooks by analysts.

Seoul-based DS Investment & Securities analyst Lee Su-rim in a recent note estimated SK Hynix's second-quarter operating profit to jump 62% from a year earlier to 8.9 trillion won--largely in line with market consensus.

That would come after first-quarter operating profit more than doubled to 7.4 trillion won from the prior-year period.

SK Hynix's robust earnings growth continues to be supported by the growing proportion of higher-end advanced HBM3E products among its total shipments of dynamic random-access memory chips, Lee said.

HBM products are expected to account for 45% of the company's total DRAM revenue this year, up from 31% in 2024, she added.

SK Hynix, which began mass producing advanced 12-layer HBM3E products ahead of rivals last year, likely dethroned Samsung Electronics as the world's largest DRAM maker in the first quarter, according to research firm Counterpoint Technology Market Research.


Write to Kwanwoo Jun at kwanwoo.jun@wsj.com


(END) Dow Jones Newswires

06-17-25 0322ET