SK Hynix, Micron Join Trillion-Dollar Club

SK Hynix and Micron Join Trillion-Dollar Club Amid AI Chip Boom

Memory-chip makers SK Hynix and Micron Technology have joined an elite group of companies with market values exceeding $1 trillion amid the artificial-intelligence-driven chip boom. Shares of the world's second-largest memory-chip maker SK Hynix have more than tripled this year.

SK Hynix's Surge

On Wednesday, SK Hynix shares closed 9.3% higher, bringing the South Korean firm's market capitalization to 1.599 quadrillion won, equivalent to $1.061 trillion. The company leads the high-bandwidth memory (HBM) market by supplying HBM3 and HBM3E products to Nvidia.

Micron's Milestone

Micron reached the $1 trillion market-cap milestone on Tuesday, with its stock jumping 19% to close at $895.88. UBS analyst Timothy Arcuri raised his 12-month price target for the U.S. chip maker threefold to $1,625.

Global AI Infrastructure and Memory Chip Demand

As the global AI infrastructure build out continues, chip makers stand to benefit from tighter supplies of high-performance computing chips and higher prices for memory products. SK Hynix became the second South Korean company to cross the $1 trillion threshold after Samsung Electronics.

Future Outlook

Mirae Asset Securities analyst Kim Young-gun expects undersupply in DRAM and NAND memory chips to continue through 2028. SK Hynix plans to list in the U.S. this year to raise funds for investments to meet AI-driven demand and continues to ramp up production capacity.