Memory chipmakers Micron and SK Hynix hit $1 trillion valuations amid surging AI-driven demand and supply shortages.
Micron Technology and SK Hynix briefly reached $1 trillion market valuations this week, driven by relentless demand for memory chips in AI applications. Shares of both companies have surged nearly tenfold over the past year, reflecting ongoing shortages and investor enthusiasm for AI-related stocks.
SK Hynix joined South Korean rival Samsung, which crossed the $1 trillion threshold earlier this month. The rally accelerated after Samsung averted a labor strike by agreeing to worker bonuses exceeding $400,000, funded by chip division profits. South Korea’s KOSPI index climbed over 3% on Wednesday, led by the two chipmakers.
The surge underscores the market’s focus on AI infrastructure, with memory chips remaining a critical bottleneck. Analysts warn that rising bond yields could soon pressure broader equity valuations, though chip stocks continue to outperform.