Global Semiconductor Market Divides: SK Hynix Hits All-Time High While Nanya Tech Suffers Worst Performance in 13.5 Years
SK Hynix’s Stock Hits New High, AI Collaboration Drives Growth
On the morning of July 11th, SK Hynix’s stock price surpassed 300,000 Korean won, rising 1.68% from the previous day and hitting an all-time high since its acquisition by the SK Group in 2012. Meanwhile, Samsung Electronics’ stock price also increased by 1.48%.
In terms of market competition, SK Hynix has seized market opportunities by supplying HBM, a key component for AI semiconductors, to NVIDIA. In the DRAM market, it delivered impressive performance: it surpassed Samsung Electronics in market share for the first time in the first quarter and tied with Samsung Electronics at 15.5 billion U.S. dollars in the second quarter.
Notably, SK Hynix’s stock price has soared by over 70% this year. According to data, the average target price for SK Hynix among 36 covered institutions is 306,000 Korean won. The recent breakthrough above 300,000 Korean won brings it close to the institutional average target price, reflecting strong investor confidence in its AI semiconductor layout.
Nanya Tech’s Stock Plummets, Net Loss Hits 13.5-Year Low
A rare phenomenon recently emerged in the global DRAM market: DDR4 prices once surpassed DDR5, forming an inverted trend. Against this backdrop, the market had high expectations for Nanya Tech’s half-year financial report, as tight DDR4 supply drove a 70% quarter-on-quarter increase in its sales volume.
However, after the earnings report was released, Nanya Tech’s stock price plummeted, opening down more than 8%. Financial data showed that despite the growth in DDR4 sales volume, prices remained weak, with the average selling price in the second quarter still declining 4%-6% quarter-on-quarter. Adding to the pressure, a sharp appreciation of the New Taiwan Dollar led to exchange losses of up to 1.124 billion New Taiwan Dollars, widening the company’s net after-tax loss to 4.109 billion New Taiwan Dollars, with earnings per share (EPS) at -1.32 New Taiwan Dollars—doubling from the first quarter’s -0.63 New Taiwan Dollars and hitting the lowest level in 13.5 years.
Nanya Tech explained that DDR4 prices only started to rise in June, while prices in April and May remained lower than in the first quarter, preventing the second-quarter prices from effectively supporting gross profit margins. Nevertheless, it remains optimistic about the third quarter, expecting further price increases to help turn gross profit margins positive.