Chipmakers SK Hynix and Micron join $1tn club on surging AI demand

SK Hynix and Micron surpassed a $1 trillion market valuation as AI-driven demand for memory chips surged, with SK Hynix’s shares rising 10% and Micron’s up nearly 20% after UBS raised its price target. The companies join a select group of tech firms, including Nvidia and Samsung, benefiting from a global shortage of AI-powered semiconductors." "article": "South Korea’s SK Hynix and U.S.-based Micron Technology both crossed the $1 trillion market valuation mark, fueled by soaring demand for AI data center chips. SK Hynix’s shares jumped 10% on Wednesday, continuing a rally that has tripled its stock price since January, while Micron’s shares rose nearly 20% after UBS tripled its price target for the company. The surge reflects a global shortage of advanced memory chips, critical for powering AI tools. Both companies supply Nvidia, the dominant AI chipmaker, which has driven demand for high-performance semiconductors. SK Hynix’s growth follows Samsung Electronics’ entry into the $1 trillion club in May, making it the second Asian firm after Taiwan’s TSMC to achieve the milestone. Analysts attribute the rally to sustained investment in AI infrastructure, with cloud providers and tech firms expanding data centers to support machine learning models. The shortage has pushed prices higher, benefiting manufacturers like SK Hynix and Micron, which now rank among the world’s most valuable companies alongside Nvidia, Apple, Microsoft, and Meta. SK Hynix’s rise is particularly notable given its role as a key supplier to Nvidia, which dominates the AI chip market. Micron’s valuation boost comes amid strong revenue growth in its data center and AI-focused memory segments. Both companies have capitalized on the tech sector’s shift toward AI-driven computing, reinforcing their positions in the semiconductor industry.