SK Hynix and Micron have both surpassed $1 trillion in stock market valuation, driven by surging demand for chips powering artificial intelligence data centres.
Shares in South Korea’s SK Hynix, a key supplier to AI chip giant Nvidia, jumped by 10% on Wednesday, continuing a strong rally this year.
SK Hynix’s share price has more than tripled since the start of this year, reflecting extraordinary investor confidence in the AI-linked chipmaker.
US memory chipmaker Micron also saw its shares rise by almost 20% on Tuesday after investment bank UBS tripled its stock price target for the company.
Both companies now join a growing group of firms valued above $1 trillion, including Nvidia, Amazon, Apple, Microsoft, Alphabet and Meta.
Massive global demand for advanced computer chips that power AI tools has lifted the shares of companies associated with the technology across the sector.
The surge in demand has led to a global memory chip shortage in recent years, pushing up sales for manufacturers including SK Hynix and Micron.
Earlier in May, South Korea’s Samsung Electronics joined the $1 trillion club, becoming only the second Asian firm to reach the milestone after Taiwanese chipmaker TSMC.
Samsung, known for its smartphones and televisions, is also a major semiconductor manufacturer with Nvidia among its customers.
Samsung’s shares jumped by more than 6% on Wednesday after union members voted in favour of a pay deal, averting a strike that had threatened to hit the Business.
The company is now valued at around $1.34 trillion, with its shares more than doubling since the start of this year.
South Korea’s benchmark Kospi stock index, which is dominated by technology firms, also hit a fresh record high in the same period.
Nvidia has been the biggest winner in the AI spending spree and in October became the first company to reach a stock market value of $5 trillion.
Microsoft and Apple have also recently crossed the $4 trillion valuation mark, underlining the concentration of value among a small group of technology companies.
However, some investors have warned of a potential AI bubble, questioning whether these companies are overvalued and whether current levels are sustainable.