Samsung Electronics and SK Hynix have jointly exceeded the market capitalization of Alibaba and Tencent, propelled by strong investor interest in advanced semiconductor technologies amid a surge in artificial intelligence investment. This development signals a significant reordering within Asia’s technology sector, with Korean firms benefiting from high demand for AI infrastructure.
During Tuesday trading, the combined value of Samsung Electronics and SK Hynix reached $1.11 trillion, edging out the aggregate market cap of Alibaba Group and Tencent Holdings, major Chinese tech firms listed in Hong Kong. The change comes as capital increasingly flows to manufacturers supplying critical AI components rather than firms with a primary focus on e-commerce.
Year-to-date, Samsung and SK Hynix have seen their shares climb 34% and about 37%, respectively, while Alibaba has gained approximately 14%, and Tencent remains largely unchanged.
The Korean companies have experienced robust growth due to their leading role in supplying high-bandwidth memory chips essential for AI accelerators, such as those produced by Nvidia. Strong demand from major cloud computing firms and ongoing shortages of both DRAM and NAND chips have further enhanced their pricing power.
Industry analysts point out that memory components, once considered interchangeable parts in PCs and mobile devices, have now become strategic assets for large U.S. technology companies as AI development expands.
This transition has considerably increased the prominence of the Korean memory industry. Timothy Moe, chief Asia Pacific equity strategist at Goldman Sachs, indicates that semiconductor businesses are expected to contribute roughly 60% of projected earnings growth for Korean equities this year.
As for China, despite being pressured by domestic self-reliance strategies and export restrictions from the U.S., the nation’s technology sector has also witnessed tech rallies skewed towards local AI chip developers.
Last week, Samsung and SK Hynix released their fourth-quarter and full-year financial results, respectively, both showing strong growth. Samsung posted fourth-quarter revenue of KRW 93.8 trillion, a year-on-year increase of 24%. Operating profit reached KRW 20.1 trillion, compared to KRW 20.018 trillion anticipated by the LSEG SmartEstimate, and far ahead of the KRW 6.49 trillion recorded in the same period last year.
Meanwhile, SK Hynix reported a 2025 operating profit of KRW 47.2 trillion, more than double from the previous year, while annual revenue rose 46.8% to KRW 97.15 trillion. The company’s fourth quarter alone saw a 137.1% year-on-year increase in operating profit to KRW 19.17 trillion, with quarterly revenue climbing 66.1% to KRW 32.83 trillion.
