SK Hynix and Micron Cross $1 Trillion Valuations on AI Chip Boom
The BBC reported Wednesday that SK Hynix and Micron Technology have both surpassed $1 trillion in market capitalisation, propelled by relentless AI chip demand from data centre operators worldwide.
Shares Surge on AI Data Centre Buildout
SK Hynix, a South Korean memory chipmaker and key Nvidia supplier, saw its shares climb 10% on Wednesday alone. That single-day move extended a remarkable run. The stock has now more than tripled in value since January. Across the Pacific, US-based Micron surged nearly 20% on Tuesday after investment bank UBS tripled its price target for the stock. Both milestones arrived within days of each other. The twin rallies reflect a broader market view that AI infrastructure spending shows no sign of slowing.
A Growing Club of Trillion-Dollar Technology Giants
SK Hynix and Micron now join a small but expanding group of companies above the $1 trillion threshold. That list already included Nvidia, Amazon, Apple, Microsoft, Alphabet, and Meta. Earlier in May, Samsung Electronics also crossed the $1 trillion mark. Samsung became only the second Asian company to reach that level, after Taiwanese foundry TSMC. Samsung’s valuation now sits around $1.34 trillion. Its shares have more than doubled year to date. On Wednesday, Samsung received an additional boost after workers voted to accept a pay agreement, removing the threat of a strike.
Also Read: Nvidia Becomes First Company to Hit $5 Trillion Market Cap
Background: Memory Chip Shortage Fuels Pricing Power
The surge in valuations did not emerge from nowhere. The rapid scaling of AI model training and inference has created extraordinary demand for high-bandwidth memory chips, the kind that SK Hynix and Micron specialise in. That demand has outpaced supply, triggering a global memory chip shortage. Manufacturers have benefited directly through higher average selling prices and stronger order volumes. South Korea’s benchmark Kospi index, heavily weighted toward technology and chip companies, hit a fresh record high Wednesday as a result.
Also Read: Samsung Workers Vote to Avert Strike Over AI Bonus Dispute
Bubble Concerns Linger Despite Blockbuster Gains
Not everyone is celebrating. Some investors have begun questioning whether chipmaker valuations have run too far ahead of fundamentals. Nvidia itself, the biggest single beneficiary of the AI spending cycle, crossed $5 trillion in October. Microsoft and Apple have each recently surpassed $4 trillion. The concentration of gains in a narrow band of semiconductor and AI-adjacent names has prompted familiar warnings about overvaluation. Whether the underlying demand justifies current prices remains an open and contentious question among portfolio managers.
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