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Chipmakers hit trillion-dollar milestone amid AI surge
The market valuations of memory chip producers SK Hynix and Micron have surpassed $1 trillion, fueled by soaring demand for artificial intelligence (AI) infrastructure in data centers.
SK Hynix shares soar on Nvidia partnership
South Korea's SK Hynix, a critical supplier to AI chip leader Nvidia, saw its stock climb 10% on Wednesday. The company's shares have more than tripled since the beginning of 2026, reflecting investor enthusiasm for AI-driven growth.
Micron's stock jumps after UBS price target revision
U.S.-based Micron experienced a nearly 20% surge in its share price on Tuesday after investment bank UBS tripled its stock price target for the company. The move underscores growing confidence in memory chip manufacturers as AI adoption accelerates.
Global chip shortage drives sales and valuations
The rapid expansion of AI technologies has created a worldwide shortage of advanced semiconductors, boosting revenues for firms like SK Hynix and Micron. Both companies now join an elite group of corporations with market capitalizations exceeding $1 trillion, including Nvidia, Amazon, Apple, Microsoft, Alphabet, and Meta.
Samsung Electronics enters $1tn club
Earlier in May, South Korea's Samsung Electronics became the second Asian company to reach a $1 trillion valuation, following Taiwan's TSMC. Samsung, a major player in both consumer electronics and semiconductors, counts Nvidia among its clients. The company's stock rose over 6% on Wednesday after union members approved a pay agreement, averting a potential strike that could have disrupted operations.
Samsung's market value now stands at approximately $1.34 trillion, with its shares more than doubling since the start of the year.
South Korea's tech-heavy Kospi index hits record high
The country's benchmark Kospi index, dominated by technology stocks, reached a new all-time high on Wednesday, reflecting broader optimism in the sector.
Nvidia leads AI rally but faces rising competition
Nvidia, the standout performer in the AI spending spree, became the first company to achieve a $5 trillion market valuation in October. Despite reporting record sales, concerns are mounting about increasing competition in the AI chip market.
Microsoft and Apple have also recently crossed the $4 trillion valuation threshold, further highlighting the dominance of tech giants in the current market environment.
Investors warn of potential AI bubble
While valuations continue to climb, some investors have raised concerns about a possible AI bubble, questioning whether the current market prices accurately reflect the long-term fundamentals of these companies.
"The rapid rise in valuations is impressive, but we must remain cautious about sustainability," said an industry analyst.
