Samsung's Reassertion as Korea's Top Stock: AI Chip Hopes and Market Optimism

Samsung Electronics has regained its position as South Korea's top stock, with its shares up 10% in July, driven by investors' hopes for the company to catch up in the advanced memory chip market for artificial intelligence. Rival SK Hynix has seen its shares drop 8% during the same period. Samsung has accounted for over a third of Korea's Kospi gain this year, with investors betting on further gains in the company's shares.

Samsung Electronics (SMSN.IL) has reclaimed its position as South Korea's top stock, with its shares rising by 10% in July. This surge is driven by investor optimism that Samsung will catch up in the advanced memory chip market for artificial intelligence (AI). In contrast, rival SK Hynix (000660.KS) has seen its shares drop by 8% during the same period [1].

The resurgence of Samsung's stock is notable, as it has accounted for over a third of Korea's Kospi gain this year. Investors are placing their bets on further gains in Samsung's shares, fueled by the company's aggressive pursuit of the high-bandwidth memory (HBM) market. Samsung is planning to deliver HBM4 mass production samples to major global customers within this quarter, aiming to restore technology trust with next-generation products [2].

Samsung's memory division recently obtained approval for internal mass production (PRA) of DRAM with a 10-nanometer 1c process. This approval signifies that the technology requirements for mass production conversion have been met, and Samsung plans to seek a reversal in HBM4 based on this process. The company is also expanding its scope of HBM collaboration with global big tech including AMD and Broadcom [2].

Meanwhile, SK Hynix has been facing intense competition. The company's stock has dropped due to a combination of factors, including rising competition from Samsung and the impact of U.S. tariffs. SK Hynix reported a record quarterly profit in Q2 2025, driven by strong demand for AI chips and customers stockpiling ahead of potential U.S. tariffs. However, the company is investing heavily in advanced chipmaking to stay competitive, with CAPEX expected to increase compared to previous plans [3].

The market structure centered on SK Hynix is showing signs of change. Goldman Sachs has lowered its investment opinion to "neutral," indicating that SK Hynix's HBM price could fall next year due to intensifying competition and changing supply and demand dynamics [2].

In conclusion, Samsung Electronics' stock surge reflects investor confidence in the company's ability to lead in the AI memory chip market. The ongoing competition and technological advancements will continue to shape the market dynamics, with both Samsung and SK Hynix investing heavily to maintain their positions.

References:
[1] https://ca.finance.yahoo.com/quote/SMSN.IL/analysis/?ratingsScoreType=pt
[2] https://www.mk.co.kr/en/business/11376805
[3] https://www.reuters.com/world/asia-pacific/nvidia-supplier-sk-hynix-boost-spending-ai-chips-after-record-q2-2025-07-23/