Memory chipmakers surge as high-bandwidth memory demand fuels record valuations amid AI supply chain expansion.
Micron Technology and SK Hynix both surpassed $1 trillion in market capitalization within a day, driven by soaring demand for high-bandwidth memory chips critical to AI infrastructure. SK Hynix shares have climbed over 250% year-to-date, while Micron’s valuation surged after UBS raised its price target to $1,625 from $535.
The rally reflects a broader shift in the AI supply chain, with memory chips becoming essential components for GPUs and other AI hardware. Both companies are key suppliers to Nvidia, further cementing their role in the sector’s growth.
Analysts suggest the momentum may continue, with Micron’s stock potentially doubling from current levels under long-term pricing agreements.