Memory chip makers Micron Technology Inc. and SK Hynix Inc. have both surpassed $1 trillion in market capitalization, hitting the milestone within 24 hours of each other. This surge is driven by insatiable demand for their products from artificial intelligence firms as the AI rally resumes.
SK Hynix crossed the trillion-dollar mark following a rally of more than 10% in Seoul trading on Wednesday, with some reports noting a surge of over 11%. This milestone follows a share price increase of more than 900% over the past year, reflecting investor confidence in the company's position as the leading supplier of advanced memory chips powering artificial intelligence.
Micron's stock rose more than 19% as investors piled into the stock. The market activity also contributed to the Seoul KOSPI index hitting an all-time high. Micron and SK Hynix now join an elite group of companies with mega valuations, including Nvidia, TSMC, Apple, Meta, and Tesla.
Analysts indicate that the AI memory cycle still has years to run. They suggest that further upside for SK Hynix is supported by surging cloud investment and limited new capacity.