Booming AI chip demand helps create two new $1tn club members
AI data-centre demand pushed SK Hynix and Micron above $1tn in market value, joining a swelling club of chip and tech giants.
Intelligence analysis by GPT-5.4 Mini
Rising demand for chips used in AI systems has lifted SK Hynix and Micron past the $1tn valuation mark. The move reflects a broader rally across semiconductor stocks, while some investors warn the sector may be overheating.
Big computer companies need special parts to help AI work. More and more people want those parts, so the companies that make them are getting much bigger.
SK Hynix and Micron make chips that help AI systems store and move information. Their shares went up a lot, like a shop suddenly getting many more customers.
This matters because when tech companies do well, stock markets can rise too. But some people worry the excitement could get too big and pop like a soap bubble.
Analysis
What happened
BBC reports that SK Hynix and Micron have both crossed the $1tn market-value mark as investors keep piling into companies tied to AI infrastructure. SK Hynix, a major supplier to Nvidia, jumped 10% on Wednesday and has more than tripled this year. Micron rose almost 20% after UBS sharply raised its target price.
Why the stocks are rising
The article says global demand for advanced chips used in AI tools has been huge, especially for the memory chips that support AI data centres. That demand has helped create a shortage and lifted sales expectations for makers such as SK Hynix and Micron. In other words, the AI boom is not only benefiting the best-known chip designers; it is also pushing up the companies that make the supporting parts.
Wider market picture
The two companies join a growing group of $1tn firms that includes Nvidia, Amazon, Apple, Microsoft, Alphabet and Meta. The piece also notes that Samsung Electronics joined the club earlier in May, becoming only the second Asian company to do so after TSMC. Samsung's shares also climbed more than 6% after union members backed a pay deal that avoided a strike.
South Korea's Kospi index, which is heavily weighted toward tech, hit a record high as a result. At the same time, the story includes a warning from some investors who fear the AI rally could be running too hot and may be forming a bubble.
Key points
- SK Hynix and Micron each moved above $1tn in market value as AI chip demand stayed strong.
- SK Hynix shares jumped 10% and have more than tripled this year.
- Micron surged after UBS raised its stock price target.
- Samsung also rose after a pay deal avoided a strike, and South Korea's Kospi hit a record high.
- Some investors remain worried that the AI rally could be turning into a bubble.
