Move over, AI chips: Memory chips are all the rage in markets, with Micron and SK Hynix becoming trillion-dollar companies

Two major memory chip manufacturers, SK Hynix and Micron Technology, have become the latest trillion-dollar companies, marking a rapid surge in valuation tied to the AI boom. South Korea’s SK Hynix crossed the $1 trillion mark last week, with shares climbing over 250% since January, positioning it as a key supplier to AI chip giant Nvidia. The company’s growth reflects its central role in the global AI supply chain, particularly in producing high-bandwidth memory (HBM) chips. The day prior, U.S.-based Micron Technology also surpassed $1 trillion in market value, fueled by a revised price target from UBS, which tripled its forecast to $1,625 per share. Analysts cited long-term agreements with fixed pricing as a driver for Micron’s rally, suggesting further stock appreciation is possible. HBM chips are critical for AI systems, enabling faster data processing by stacking memory vertically near processors, unlike traditional memory found in laptops or phones. These chips deliver significantly higher bandwidth—Micron’s HBM4 chips, for example, reach over 2.8 terabytes per second—and are designed for next-generation AI workloads, including Nvidia’s upcoming Vera Rubin GPUs. Their efficiency reduces bottlenecks in AI models handling vast datasets. The surge in semiconductor stocks this year underscores investor demand for components powering AI workloads, shifting focus from GPUs to memory and processing units. While Nvidia dominates AI chip discussions, HBM manufacturers like SK Hynix and Micron are now at the forefront of the industry’s growth trajectory. Their valuation milestones signal a broader realignment in the tech sector, where memory chips are increasingly seen as indispensable to AI advancements.