South Korean chip manufacturer SK Hynix has crossed the $1 trillion market cap, joining the ranks of Samsung Electronics (OTC:SSNLF) and Micron Technology (NASDAQ:MU) in the memory chip sector.
On Wednesday, SK Hynix’s shares ended the session with a 9.3% increase, after peaking at 14.9% during the session. This rise propelled the company’s market value to a record 1,680 trillion won ($1.12 trillion), pushing the KOSPI index to an all-time high.
Earlier this month, competitor Samsung also crossed the $1 trillion market cap. This makes South Korea the first nation outside the U.S. to have multiple companies achieve this market value. Only three Asian companies, including Taiwan Semiconductor Manufacturing Co. (NYSE:TSM), have reached the $1 trillion milestone.
Surging demand for high-end memory chips used in AI systems like NVIDIA's (NASDAQ:NVDA) has tightened global supply and sharply increased prices, boosting profits for major chipmakers. Memory chip prices doubled in the first quarter and are expected to rise as much as 63% this quarter as AI data center demand strains supplies for smartphones, laptops, and automobiles.
“We expect memory chip demand to continue exceeding supply by 2028 to keep price levels high,” Kim Young-gun, an analyst at Mirae Asset Securities in Seoul, told Reuters. This prediction led to an 18.8% and 14.6% increase in target prices for SK Hynix and Samsung, respectively.
Memory Chip Rally Hits New Highs
The rise in SK Hynix’s market value is a testament to the growing demand for memory chips. In April, SK Hynix had a record-breaking first quarter, with revenues exceeding KRW 50 trillion ($33.7 billion) for the first time, driven by artificial intelligence-related demand. The company also announced plans for new DRAM and NAND products to dominate the memory market.
Furthermore, on Tuesday, Micron Technology’s market value also hit $1 trillion market capitalization, overtaking legacy giants JPMorgan Chase & Co. (NYSE:JPM), Walmart Inc. (NASDAQ:WMT), and Intel Corp. (NASDAQ:INTC), as well as pharmaceutical heavyweight Eli Lilly And Co. (NYSE:LLY), underscoring the broader AI-driven infrastructure boom reshaping Wall Street.
The surge cemented the company as the world's 14th-largest public firm, with The Kobeissi Letter calling its rapid rise "truly incredible."
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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