The semiconductor market for Artificial Intelligence (AI) continues to grow rapidly, with SK Hynix from South Korea positioning itself as a key player in this expanding sector. This trend is reflected in the strong performance of the SK Hynix UNICORN Value Chain Active ETF, which focuses on companies related to SK Hynix’s business ecosystem. With the increasing demand for high bandwidth memory high bandwidth (HBM)High bandwidth memory is the maximum transfer capacity… for AI applications, industry experts see significant potential for SK Hynix and its associated ETF.
A Strong Start in 2025 for SK Hynix’s ETF
As of January 24, the SK Hynix UNICORN Value Chain Active ETF, managed by Hyundai Asset Management, has recorded an impressive 25.83% return year-to-date. This ETF focuses on investing in SK Hynix and 13 other key companies that are part of its value chain. SK Hynix has the highest weighting in the portfolio, representing 24.74%, followed by its parent company, SK Square, with 22.76%. Other notable companies include PSK Holdings, Techwing, and Hanmi Semiconductor, all of which have close business relationships with SK Hynix.
SK Hynix’s Prominence in the HBM Market
SK Hynix has solidified its leadership in the high bandwidth memory (HBM) market, an essential component for AI semiconductors. Unlike conventional semiconductors like DRAM or NAND, HBM is designed to handle large volumes of data quickly and efficiently, which is crucial for AI, big data, and machine learning applications.
Industry experts highlight that SK Hynix maintains a dominant position due to its advanced technology and ability to secure long-term supply contracts. This enables the company to ensure stable revenues, even in a market where other semiconductors face price fluctuations.
According to Kim Kwang-jin, a researcher at Hanwha Investment & Securities, “while the DRAM market for PCs and smartphones showed signs of slowing down in the last quarter, SK Hynix achieved good results thanks to demand in the AI sector. Furthermore, sales are expected to increase this year, not only with NVIDIA but also with other major ASIC (application-specific integrated circuit) clients.”
A Still Undervalued Market
Despite its leadership in the HBM market, SK Hynix’s market capitalization remains around €150 billion, significantly lower than that of giants like NVIDIA or TSMC. According to Cho Sang-hyun, head of equity management at Hyundai Asset Management, this represents an opportunity: “Although SK Hynix leads alongside major tech companies in the global AI sector’s development, its stock valuation is relatively low, suggesting significant upside potential.”
Outlook for the ETF and the AI Market
The SK Hynix UNICORN Value Chain Active ETF not only reflects SK Hynix’s strength in the HBM market but also the growing interest in theme-based investments focused on value chains. Hyundai Asset Management anticipates that as AI and big data technology continues to evolve, the demand for advanced semiconductors like HBM will keep expanding.
With an innovative focus in the market, this ETF positions itself as an attractive option for investors looking to benefit from the growth of the tech sector and AI.
The initial performance of the ETF in 2025, along with SK Hynix’s technological strength, reinforces its position as a leader in transforming the semiconductor market for AI. With industry trends clearly aligned with its capabilities, SK Hynix and its value chain promise to be crucial players in the global technology landscape.