SK Hynix joins trillion-dollar club as AI chip demand drives market surge

South Korean memory chipmaker SK Hynix has become the third company globally to reach a $1 trillion market capitalisation, crossing the threshold on Wednesday. The valuation milestone follows U.S. firm Micron Technology, which briefly entered the same club on Tuesday. Both stocks have surged due to intense demand for AI-related memory chips and persistent supply shortages, with shares rising approximately 10-fold over the past year.

SK Hynix’s shares closed more than 9% higher on Wednesday, continuing a week where near-20% surges highlighted the ongoing dash for semiconductor assets. Micron’s stock price has skyrocketed more than 1,200% since early April last year, reflecting the frenzied investor appetite for hardware underpinning artificial intelligence infrastructure.

The valuation surge also benefited Samsung Electronics, which hit the $1 trillion mark earlier in May. Samsung shares gained 3% on Wednesday after a landmark labour deal averted a potentially damaging strike. The agreement includes worker bonuses of over $400,000 for some memory-chip staff, funded by a sizeable portion of the company’s chip division profits.

In broader markets, optimism persisted as the S&P 500 and Nasdaq closed at record highs. Goldman Sachs has raised its year-end forecast for the S&P 500 to 8,000 from 7,600, citing continued strength in corporate earnings. South Korea’s KOSPI index also surged over 3% on Wednesday, led by the performance of Samsung and SK Hynix.

Conversely, oil prices fell 3% as diplomatic hopes persisted in the Iran standoff, unwinding some of Tuesday’s gains. In Europe, markets edged higher despite comments from European Central Bank board member Isabel Schnabel, who suggested a rate hike next month even if a peace plan is agreed, stating that “looking through” the energy shock was not an option.