After Samsung and Micron’s AI chip explosion, SK Hynix joins the trillion-dollar club
Thanks to the AI-driven boom, SK Hynix’s market value crossed $1 trillion for the first time on Wednesday. Joining rivals in the memory chip industry Samsung Electronics and Micron Technology.
The South Korean chipmaker’s market capitalization reached a record 1.68 trillion won ($1.12 trillion). While the country’s benchmark KOSPI index reached an all-time high as SK Hynix shares ended the session up 9.3% after reaching a high of 14.9% during the day.
Micron, a U.S.-listed company, reached $1 trillion in market capitalization on Tuesday. While Samsung, its domestic rival, did so for the first time on May 6.
Strong demand on chips and AI chipsets
Strong demand for high-end memory chips used in AI chipsets, such as those designed by Nvidia. Has reduced supply and sent prices soaring, benefiting the world’s largest semiconductor manufacturers.
Memory chip prices doubled in the first quarter alone compared to the previous period and are expected to rise by up to 63% in the current quarter due to demand from AI data centers, which is limiting supply for smartphones, laptops, and cars, and helped major memory chip manufacturers post record profits.
Only three Asian companies joined the trillion-dollar club, including TSMC. South Korea has become the first country, aside from the United States, to have more than one company reach that market value.
Samsung and SK Hynix made up half of the index by market value after Wednesday’s surge. After rising 76% last year, the KOSPI index has surged 95% so far this year, making it the best-performing index in the world amid the global AI boom.
Due to a vote by South Korean unionized workers to adopt a tentative pay accord, which prevented a strike that would have disrupted the world’s chip supply. Samsung shares also increased as much as 8% before closing up 2.7%, reaching an all-time high of 307,000 won.
Citing «the structural changes that AI has driven across the memory sector.» UBS said in a research on Tuesday that it has more than increased its price estimate for Micron.
Samsung shares have risen 149% so far this year, while SK Hynix shares have risen 215% and Micron shares have risen 245%.
