By Surging global demand for artificial intelligence (AI) chips has pushed two major memory chipmakers — South Korea’s SK Hynix and U.S.-based Micron Technology — across the $1 trillion market capitalization milestone, adding fresh members to the world’s most elite corporate club.
Shares in SK Hynix soared nearly 10% on Wednesday, extending a remarkable rally that has seen the company’s stock more than triple since the beginning of the year. The firm, a key supplier of high-bandwidth memory (HBM) chips to AI leader Nvidia, has benefited immensely from the explosive growth in AI data centres worldwide.
The milestone for SK Hynix came shortly after Micron’s shares jumped almost 20% on Tuesday, following UBS’s decision to triple its price target for the company. Both firms now join an exclusive group of technology giants valued above $1 trillion, including Nvidia, Amazon, Apple, Microsoft, Alphabet, and Meta.
The rapid ascent reflects the intense worldwide appetite for advanced semiconductors that power AI applications. This demand has triggered a significant global shortage of high-end memory chips, driving up revenues and profits for leading manufacturers.
Earlier in May, Samsung Electronics became the latest Asian company to enter the $1tn club, joining Taiwan’s TSMC as only the second firm from the region to achieve the feat. Samsung, a major producer of semiconductors and a key supplier to Nvidia, is now valued at approximately $1.34 trillion. Its shares climbed more than 6% on Wednesday after union members approved a new pay deal, successfully averting a potential strike that could have disrupted operations.
The strong performance of these chip giants has also lifted South Korea’s benchmark Kospi index, which is heavily weighted toward technology stocks, to a fresh record high.
Nvidia remains the standout performer in the AI surge. The company became the first in the world to reach a $5 trillion valuation last October and continues to post record-breaking sales, despite emerging concerns about intensifying competition in the sector. Microsoft and Apple have also recently surpassed the $4 trillion mark.
However, the blistering rally has not been without scepticism. Some investors and analysts in Silicon Valley have voiced growing fears of a potential AI bubble, questioning whether current valuations are sustainable amid rising competition and high expectations for future growth.
The semiconductor industry’s fortunes remain closely tied to the continued expansion of AI infrastructure, with memory chip demand expected to stay robust as tech companies race to build ever more powerful data centres.
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