Samsung vs SK Hynix: Which AI Memory Stock Is Better? How to Invest?

TradingKey - Amid the global memory supercycle fueled by the AI wave, Samsung Electronics and SK Hynix are breaking performance and market capitalization records at an unprecedented pace, joining the trillion-dollar market cap club together. While both operate in the same sector, their underlying logic, growth trajectories, and market narratives are distinctly different. So, how should investors choose? And how should they enter the market?

Financial Performance: Samsung Dominates in Scale, SK Hynix Leads in Profitability

In the first quarter of 2026, SK Hynix recorded revenue of approximately 52.6 trillion won and an operating profit of about 37.6 trillion won, with an operating margin reaching 72%; Samsung Electronics posted revenue of approximately 133.9 trillion won and an operating profit of about 57.2 trillion won, yielding an operating margin of roughly 42.7%. Although Samsung's scale far exceeds that of SK Hynix, SK Hynix has shown stronger profitability resilience, driven by the high margins of its HBM business.

Looking strictly at the memory business, Samsung's chip division saw its Q1 operating profit surge approximately 48-fold year-on-year to 53.7 trillion won, reflecting a similarly fierce recovery momentum. However, SK Hynix maintains a purer business structure, free from the margin drag of foundry and consumer electronics operations.

HBM Market Landscape: SK hynix Leads in Share as Samsung Accelerates Catch-up

In the field of AI-specific HBM (High Bandwidth Memory), SK Hynix remains the leader: its HBM shipment market share is approximately 52%, while Samsung holds about 39%. Furthermore, SK Hynix has secured over two-thirds of the supply orders for Nvidia's ( NVDA) HBM4, accounting for nearly 70% of the total, and achieved mass production of HBM4 in February this year, continuing to consolidate its advantage.

While Samsung experienced delays during the HBM3E stage due to yield and heat dissipation issues, it successfully delivered HBM3E to Nvidia in the fourth quarter of 2025 and broke into the supply chains of Google ( GOOGL) and AMD ( AMD) supply chains. In February 2026, Samsung also announced the mass production of HBM4, significantly accelerating its catch-up pace. On May 29, Samsung Electronics announced it had begun shipping the industry's first 12-layer stacked HBM4E samples to global customers, taking an early lead in the AI memory market competition.

In terms of stock performance, SK Hynix has risen approximately 247% year-to-date, while Samsung's gains have been more moderate at about 149%. Nomura recently raised its target prices for SK Hynix and Samsung to 4 million KRW and 590,000 KRW, respectively, maintaining "Buy" ratings for both with similar expected upside.

Investors seeking growth potential should choose SK Hynix, as it holds the top HBM market share, has a pure-play memory business, and offers higher margins, though it faces more significant pullbacks when AI demand fluctuates. Those seeking stability should opt for Samsung Electronics due to its massive scale and strong risk resilience; if its HBM4 catch-up is successful, it is poised for a "double play" in earnings and valuation.

How to invest in Samsung and SK Hynix?

As of May 29, 2026, Samsung Electronics has risen by over 163% year-to-date, while SK Hynix has surged by more than 258%. Both companies are listed in South Korea; besides the underlying shares, investors can also gain exposure through the following channels:

US Channels (Most direct, suitable for US account holders)

US ADRs

Samsung: SSNGY is the primary ticker, with 1 unit representing 25 underlying shares. Note that the price is subject to the dual impact of KRW exchange rate fluctuations and an annual custody fee of approximately $0.01-$0.05 per share.

SK Hynix: Citigroup, JPMorgan, and Goldman Sachs have been appointed as lead underwriters. A confidential listing application was submitted to the SEC in March, with a target listing window of June-July 2026. The fundraising scale is expected to reach $10-$14 billion, making it one of the largest US IPOs by an Asian company in recent years. Once listed, it will be the primary channel for investing in SK Hynix.

DRAM Memory Thematic ETF

World's first memory chip thematic ETF ( DRAM ), listed on April 2, attracted approximately $6.5 billion in capital inflows in just 27 trading days. Top three holdings: SK Hynix (approx. 27.69%), Samsung Electronics (approx. 20.27%), and Micron (approx. 25.85%), with Samsung and SK Hynix together accounting for nearly half of the weighting. DRAM is an actively managed ETF with strict selection criteria, choosing only companies that derive over 50% of revenue or profit from memory operations; it currently holds only 11 positions. It is ideal for US-based investors to gain one-click exposure to global memory leaders.

EWY South Korea ETF

iShares MSCI ( EWY) South Korea ETF, tracking the South Korean broad market. Samsung's weight is approximately 20% and SK Hynix is about 15%, totaling over 35%. EWY's holdings are diversified across multiple sectors, making it suitable for conservative investors bullish on the overall South Korean economy; however, it offers less sensitivity to the storage sector compared to the DRAM ETF.

Hong Kong Channels (Most convenient, suitable for Mainland and Hong Kong investors)

CSOP 2x Daily Long Hynix (07709.HK)

Listed on October 16, 2025; its AUM reached HK$42.1 billion as of May 7, 2026, making it the world's largest single-stock leveraged product. Net inflows in Q1 reached $1.56 billion, surpassing products related to Tesla ( TSLA) and Microsoft ( MSFT) related products. As of May 28, the YTD return for CSOP 2x Daily Long Hynix reached approximately +512%.

CSOP Samsung Electronics 2x Leveraged/Inverse Products (07747.HK / 07347.HK)

Listed on May 28, 2025, with a management fee of 1.6% per annum, designed to capture double the daily performance of Samsung Electronics. CSOP 2x Daily Long Samsung (07747.HK) has achieved a YTD return of approximately 285%.

South Korean domestic leveraged ETFs (listed on May 27, high-risk short-term tools)

On May 27, eight asset management companies, including Samsung Asset Management and Mirae Asset, listed the first batch of 2x leveraged ETFs tracking Samsung Electronics and SK Hynix on the Korea Exchange. On its debut day, the KODEX SK Hynix Leveraged ETF's daily trading volume reached 4.39 trillion won, ranking first among ETFs. The TIGER Samsung Electronics Leveraged ETF also ranked among the top with a turnover of approximately 2 trillion won.

European GDRs (suitable for European markets and IBKR users)

Samsung: London GDR (SMSN), USD-denominated, priced at approximately $3,000 per share. Since Samsung's Korean shares underwent several splits while the GDRs did not (originally 1 GDR represented 25 shares), the unit price is extremely high.

SK Hynix: Germany/Luxembourg GDR (HY9H), EUR-denominated, with limited liquidity; limit orders are recommended.