Micron and SK Hynix surpass $1 trillion valuation milestone on surging AI memory demand

Micron Technology Inc. and SK Hynix Inc. reached a combined market valuation of over $1 trillion for the first time, fueled by explosive demand for memory chips in artificial intelligence applications. Micron’s stock surged 19% in a single day, following a UBS report that tripled its price target to $1,525 per share, citing long-term agreements with major AI customers and fixed pricing deals. The investment bank noted AI-driven structural changes in the memory market will continue to boost Micron’s valuation. SK Hynix’s shares rose 11% amid the rally, extending gains of about 250% since the start of the year, outpacing Micron’s 214% increase. Both companies have struggled to meet production demands, leading to a global memory chip shortage and allowing them to raise prices significantly. Samsung Electronics Co. Ltd. also crossed the $1 trillion market cap milestone weeks earlier due to similar trends. Micron’s market cap exceeded $700 billion less than a month ago, propelling it into the ranks of the most valuable U.S. tech firms. Intel Corp., which initially lagged in AI adoption, has seen its stock rise over sixfold this year, nearing all-time highs due to CPU demand. Other chipmakers, including Advanced Micro Devices Inc., Qualcomm Inc., and Marvell Technology Inc., have also hit record valuations recently. The surge reflects AI firms’ insatiable need for high-bandwidth memory and dynamic random-access memory chips, essential for powering AI servers and accelerators. With production unable to keep pace, memory prices remain elevated, driving unprecedented profit growth for the industry leaders. Analysts expect the trend to persist as AI adoption accelerates globally.