SK Hynix Edges Past Samsung in Valuation as 72% Margins and Strike Risk Reshape Korea's Chip Pecking Order

SK Hynix's forward P/E surpasses Samsung's as shares hit all-time high, driven by surging demand and 72% operating margin; Samsung faces strike risk.

SK Hynix has accomplished something that seemed unthinkable just a year ago: its forward price-to-earnings ratio has surpassed that of Samsung Electronics for the first time in modern memory, snapping the latter's decades-long grip on the country's premium valuation ranking. The milestone landed on the same day the stock closed at an all-time high of 1,976,000 won, capping a month that saw the chipmaker add roughly 77 percent to its share price in just thirty trading sessions.

Market capitalization tells a similar story. SK Hynix’s valuation crossed the 1,400 trillion won threshold on Wednesday, swelling by over 100 trillion won in a single session. That leaves it just shy of Samsung’s 1,669 trillion won market cap, and some observers believe the gap could vanish entirely by the end of May if the current trajectory holds. The shares have surged about 189 percent since the start of the year.

The engine behind this rally is a combination of sky-high demand and virtually sold-out production lines. SK Hynix reported an operating profit in the first quarter of 2026 that quadrupled year-on-year, pushing its operating margin to an eye-popping 72 percent. That level of profitability even beats Nvidia, the industry’s traditional margin king. The company confirmed that its entire output of DRAM, NAND, and high-bandwidth memory (HBM) chips is already allocated, with no excess capacity to spare. Major technology buyers such as Microsoft and Google are so concerned about supply that they are exploring direct investments to bankroll new fabrication facilities in exchange for guaranteed future deliveries.

Samsung, meanwhile, finds itself entangled in a labor dispute that threatens to hand SK Hynix even more breathing room. The national conciliation authority suspended ongoing wage talks on Wednesday, clearing the way for a planned 18-day strike from May 21 to June 7. Analysts at JPMorgan estimate that potential wage increases could shave between seven and twelve percent off Samsung’s operating profit. Beyond the immediate financial hit, the stoppage risks alienating customers who depend on steady chip flows.

Yet the valuation crossover is far from permanent. Samsung has secured qualification for Nvidia’s upcoming Vera Rubin platform with its own HBM4 memory chips, and it plans to start mass production of those devices in the second half of 2026. A successful ramp-up would directly challenge SK Hynix’s current dominance in the HBM market and could narrow the performance gap between the two stocks.

For now, the technical picture supports continued caution. SK Hynix’s relative strength index stands near 69, signaling a hot stock that is not yet overbought but leaves little room for disappointment. Whether Samsung’s strike actually materializes will be decided in the coming days. If the conflict escalates, the distance between the two South Korean chip titans could widen further—and SK Hynix’s newfound leadership may prove more than a fleeting anomaly.