Foreign investment in Samsung Electronics Co. has propelled its stock higher, fueled by expectations of increased business from prominent AI chip designer Nvidia Corp. Analysts suggest that the performance gap between Samsung and SK Hynix may begin to narrow as SK Hynix faces steeper declines.
Roh Jongwon, Chief Investment Officer at Infinity Global Asset Management, noted that while SK Hynix has significantly outperformed Samsung this year, it is likely to experience a correction. “SK Hynix absolutely outperformed Samsung Electronics so far this year, but the higher the mountains, the deeper the valley,” he remarked.
Last month, Samsung was the sole gainer among the six memory-related stocks tracked by Bloomberg Intelligence, with shares rising nearly 3%. In contrast, SK Hynix and Micron Technology Inc. each saw declines exceeding 16%. On Friday, SK Hynix shares plummeted more than 10%, contributing to a broader technology selloff, while Samsung’s shares fell by 4.1%.
SK Hynix has established itself as a leading supplier of high-bandwidth memory (HBM) chips essential for AI acceleration. Nevertheless, Samsung has announced intentions to significantly boost its HBM production. Reports suggest the company anticipates securing Nvidia’s approval for its next-generation HBM3E chip within two to four months.
Jung In Yun, CEO of Fibonacci Asset Management Global, stated, “From Nvidia’s perspective, it cannot meet demand with supplies from SK Hynix only. Once Samsung passes the qualification test from Nvidia, its revenues next year will grow explosively,” urging investors to adopt a more bullish stance on Samsung.
