Chipmakers SK Hynix and Micron Surpass $1 Trillion Valuation
The stock market valuations of chipmakers SK Hynix and Micron have exceeded the $1 trillion (£740 billion) threshold, fueled by a surge in demand for artificial intelligence (AI) data centers.
Shares in South Korea's SK Hynix, a key supplier to AI chip leader Nvidia, increased by 10% on Wednesday. This rise continues a rally that has seen the company's share price more than triple since the beginning of this year.
On Tuesday, US memory chipmaker Micron's shares climbed nearly 20% following investment bank UBS tripling its stock price target for the company.
Both SK Hynix and Micron now join an expanding group of firms with valuations exceeding $1 trillion, which includes technology giants Nvidia, Amazon, Apple, Microsoft, Google-owner Alphabet, and Meta.
Rising Demand for AI Chips Drives Market Growth
The global demand for advanced computer chips that power AI applications has surged, boosting the stock prices of companies linked to this technology.
This increased demand over recent years has caused a worldwide memory chip shortage, resulting in higher sales for manufacturers such as SK Hynix and Micron.
Earlier in May, South Korea's Samsung Electronics, known for its smartphones and televisions, also joined the $1 trillion valuation club. Samsung became only the second Asian company to reach this milestone after Taiwanese chipmaker TSMC.
Samsung is a significant semiconductor manufacturer, counting Nvidia among its customers.
