SK Hynix Inc. experienced its biggest jump in over three years, solidifying its lead over Samsung Electronics Co. in the race for AI memory-chip dominance. SK Hynix closed 9.7% higher in Seoul, driven by growing excitement over its high-bandwidth memory chips that are supplied to Nvidia Corp, a leading AI processor maker. Meanwhile, Samsung gained 2.7% after reporting earnings and announcing plans to launch a new HBM chip later this year.

Investors believe that Samsung has fallen behind SK Hynix in AI memory-chip development. Analyst Sanjeev Rana from CLSA Securities Korea Ltd. stated, “Hynix results yesterday left no room for doubt as to who is the leader in this space.” Wall Street investors, including BlackRock Inc. and Fidelity, have shown interest in the semiconductor sector due to the prospects of AI technology. Nvidia shares have more than tripled in value in 2023 as a result.

While SK Hynix’s stock was initially stagnant after reporting earnings, it saw a significant surge a day later. The stock is now up 65% year to date, outperforming Samsung. Analysts, as tracked by Bloomberg, predict a further 15% increase in SK Hynix’s shares over the next 12 months.

Overall, SK Hynix’s dominance in AI memory-chip development and its strong performance in the market make it poised for its best year since 2017.

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