SK hynix leads the global market in HBM and DDR5 memory

Numerous market analysis research institutions predict a resurgent semiconductor storage industry in the latter half of this year. Foremost among the catalysts is the artificial intelligence tool, ChatGPT, which has ignited a global frenzy over recent months, dramatically boosting the demand for data center GPUs such as the Nvidia A100 and H100. This, in turn, has escalated the demand for HBM and DDR5 memory, counterbalancing the losses incurred by the decrease in DDR4 memory prices, and concurrently promoting SK Hynix’s performance growth. Its stock price has surged by over 50% since the beginning of the year.

SK hynix HBM3E Nvidia

As reported by Business Korea, no fewer than nine securities firms have elevated their target stock prices for SK Hynix this month alone. On June 15 of this year, SK Hynix’s share price peaked at 121,100 Korean Won during trading hours, marking a new 52-week high. Compared to the closing price of 75,000 Korean Won on December 29 last year, this is a rise exceeding 61.3%, reflecting investor confidence in SK Hynix.

Over the past year, the memory industry’s three giants – Samsung, SK Hynix, and Micron – have sequentially decided to cut production in order to stabilize prices and control inventory levels. After a prolonged endeavor, the industry generally anticipates a recovery in the third quarter of this year when demand is expected to exceed supply. It is reported that the shipment proportion of server DDR5 memory has risen from 10% in the first quarter of this year to over 30% in the second quarter, with an expected quarterly increase of over 35%.

Analysts note that SK Hynix’s HBM class storage products lead the competition, and it is also the sole company mass-producing 128GB DDR5 memory. It possesses the largest market share in these sectors, thus reaping the maximum benefits amidst the artificial intelligence wave.