Booming AI Chip Demand Creates Two New Members Of The $1tn Club
Rising global demand for artificial intelligence infrastructure has pushed semiconductor giants SK Hynix and Micron Technology past the $1 trillion (£740 billion) market valuation milestone.
Shares of SK Hynix surged by 10% on Wednesday, extending a remarkable rally that has seen the company’s stock price more than triple since the start of the year. The South Korean chipmaker is a major supplier to AI powerhouse Nvidia.
Meanwhile, Micron’s shares jumped nearly 20% in the United States after investment bank UBS significantly raised its stock price target for the company, reflecting growing investor optimism around AI-driven demand for memory chips.
The two firms now join an elite group of trillion-dollar companies that includes Amazon, Apple, Microsoft, Alphabet, and Meta.
The rapid expansion of AI tools and data centres has triggered huge demand for advanced semiconductors, especially memory chips used in training and operating AI systems. This demand has also contributed to a global chip shortage, boosting revenues for manufacturers tied to the sector.
Earlier this month, Samsung Electronics also crossed the $1 trillion valuation mark, becoming only the second Asian company after TSMC to achieve the milestone.
Samsung’s shares climbed more than 6% after workers approved a pay agreement that helped the company avoid a potentially disruptive strike. The company is currently valued at approximately $1.34 trillion.
South Korea’s tech-heavy Kospi stock index also reached a fresh record high amid the AI-driven rally.
Nvidia remains the biggest beneficiary of the global AI boom. The company became the first business in history to surpass a $5 trillion market valuation in October, fuelled by soaring demand for its AI chips.
However, despite the massive growth, some investors continue to warn about a possible AI investment bubble, questioning whether tech stocks linked to artificial intelligence have become overvalued.
