tech
The AI chip frenzy is creating a new trillion-dollar contender
SK Hynix is a top supplier of memory chips to Nvidia, whose AI accelerators have become the backbone of the AI race.
TL;DR
- SK Hynix's stock price has risen more than 200% this year, nearing a trillion-dollar valuation.
- The company is a key supplier of high-bandwidth memory chips to Nvidia for AI systems.
- The AI boom is driving demand for memory chips, transforming them into a hot market trade.
- Samsung Electronics also reached a $1 trillion valuation, with its stock up over 140% this year.
- The Roundhill Memory ETF (DRAM) has seen significant gains since its launch, holding companies like Micron, Samsung, Sandisk, and SK Hynix.
- South Korea's stock market, including the Kospi index, has experienced record highs due to the AI infrastructure demand.
- Goldman Sachs views South Korea favorably due to its memory chip dominance and AI exposure.