How a near-bankrupt chipmaker beat Samsung and became South Korea's most valuable company

A historic reversal of fortunes

On June 22, 2026, a chipmaker that nearly collapsed under debt two decades ago became South Korea's most valuable listed company. SK Hynix shares closed 5.6% higher, lifting its market capitalization to 2.080 quadrillion won ($1.362 trillion), fractionally ahead of Samsung Electronics at 2.067 quadrillion won . Samsung, the country's dominant stock since November 2000, had held the title for 26 years .

The HBM bet that won AI

The core driver is high-bandwidth memory (HBM) — the specialized, vertically stacked memory chips that feed data to AI processors at extreme speeds. SK Hynix is the dominant HBM supplier to Nvidia and Google . The generative AI boom created what analysts call a "supercycle" for memory chips, and SK Hynix — with pure-play exposure to the AI memory supply chain — became the market's favorite beneficiary .

2026 share price performance: SK Hynix's stock surged roughly 250% in the first half of 2026 . By June, its market cap of $1.36 trillion was roughly 1.7x its February valuation of ~$448 billion . Its Q1 2026 operating margin reached 72% — higher than Nvidia's .

From near-collapse to trillion-dollar company

SK Hynix traces its origins to Hyundai Electronics, which was spun off as Hynix Semiconductor in 2001. The company spent years under chronic debt and repeated restructurings, nearly collapsing during memory chip downturns . A court-led workout program forced brutal cost-cutting — facilities were sold, divisions were spun off, and thousands of employees were laid off .

The turning point — 2012 acquisition: SK Telecom's consortium acquired a 21.05% stake for about 3.4 trillion won ($3 billion), providing financial stability and long-term strategic direction . SK Group Chairman Chey Tae-won described the acquisition as a risky bet on a company that many considered a "hot potato" .

The HBM gamble: Over the following decade, SK Hynix invested early and heavily in HBM technology. Samsung executives had virtually disbanded their HBM team, seeing little near-term potential . SK Hynix, an engineer-focused organization, believed HBM would become essential for AI learning and continued developing the technology through the lean years . When ChatGPT launched in November 2022 and GPU orders for Nvidia began flooding in, SK Hynix was ready with HBM3 — and became Nvidia's main supplier .

2025 profit milestone: For the first time in the two companies' history, SK Hynix exceeded Samsung Electronics in annual operating profit — 47.2 trillion won vs. 43.6 trillion won .

What's next: a U.S. listing as soon as August 2026

SK Hynix is pursuing a U.S. stock market listing via American Depositary Receipts (ADRs), targeting a debut as soon as August 2026 . The company confidentially filed a Form F-1 with the SEC in March 2026 . The offering could raise between $10 billion and $14 billion by issuing roughly 2-3% of its total shares . Investor response has been described as "extremely positive" . Proceeds are earmarked for AI infrastructure including a semiconductor cluster in Yongin, South Korea, and a facility in Indiana .

The KOSPI concentration problem

SK Hynix's rise has created an extreme concentration risk in South Korea's benchmark index:

• Combined weight above 50%: By late May 2026, Samsung (29.1%) and SK Hynix together accounted for 50.44% of the entire KOSPI market capitalization — the first time a single pair has held a majority .
• KOSPI masked a selloff: The index surged roughly 96% year-to-date by early June 2026, driven almost entirely by the two chip giants, while many other KOSPI stocks actually declined . On May 28, decliners (826) outnumbered advancers (77) by more than tenfold even as the index hit a record high .
• Systemic risk warnings: A May 2026 Goldman Sachs report warned that the historic concentration poses systemic risk — a downturn in the AI chip cycle could trigger outsized index losses . BTIG analyst Jonathan Krinsky separately warned of a "swift downside reversal" risk . The electrical and electronics sector now accounts for 60.2% of total market weight .
• Leveraged ETF effect: New single-stock leveraged ETFs for Samsung and SK Hynix intensified fund flows into the two names, further deepening market polarization .

Bottom line: SK Hynix's rise from near-bankruptcy to Korea's most valuable company is a story of early HBM bets, a 2012 lifeline from SK Group, and the AI infrastructure boom. The company now faces the dual challenge of executing a blockbuster U.S. listing while sustaining its lead against a resurgent Samsung — all while South Korea's stock market becomes increasingly dependent on two semiconductor giants.