Samsung Tops South Korea's Stock Charts on AI Chip Hype

Samsung Electronics rebounded to be South Korea's largest stock, driven by hopes for its high-end memory chips for artificial intelligence (AI). The shares of the company rose 10 percent in July, helping the Kospi index rank as the best major equity index in the world so far this year.

Investors injected around USD 1.2 billion into Samsung, compared with more than USD 200 million withdrawals from rival SK Hynix, which presently dominates the high-bandwidth memory (HBM) market with a 57 percent share.

Analysts indicate Samsung has the potential to close the gap with SK Hynix in 2027 and achieve parity at 38 percent each through advances in AI and data center demand.

Key Highlights:

• Samsung's stock surged 10 percent in July, boosting the Kospi index to top global equity gains
• Investors poured approximately USD 1.2 billion into Samsung amid optimism over AI-compatible memory chips
• Industry analysts see Samsung closing the gap with SK Hynix by 2027, driven by AI and data center demand

 "Samsung's AI-compatible memory chip strategy puts it in a good position for growth in the future," said market analyst Lee Jin-woo. The firm's positive outlook is also bolstered by growth in smartphone markets and recent governance reforms.

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SK Hynix, which had record profits, intends to increase capacity in order to protect its market share. Yet Samsung's wider product range and continuing innovation are regarded as significant benefits. The company will report its Q2 profits on July 31, with hopes of seeing strong results continue.

Industry analysts highlight that Samsung's comeback is a testament to its strength amidst fierce competition and technological changes. "Samsung's capacity to advance rapidly in AI and cloud computing trends will be important in ensuring that it remains at the top," noted analyst Kim Soo-bin. With the AI industry speeding up, Samsung's strategic investments are gearing it up to continue growing and maintain market leadership in the next few years.