SK Hynix crossed a $1 trillion market-value threshold for the first time, joining Samsung Electronics and Micron Technology. Shares rose sharply, pushing valuation above 1,600 trillion won. The move reflects an AI infrastructure boom that increases demand for advanced memory chips used in data centers and AI accelerators, particularly those tied to Nvidia. High-end memory supply has tightened, driving prices higher across the industry. Memory chip prices reportedly doubled in the first quarter and are expected to rise further as AI data center expansion strains global supply chains. Earnings expectations for major memory makers have improved due to higher prices and long-term supply shortages. The three companies dominate the advanced memory chip market feeding AI infrastructure demand.
"SK Hynix has become the latest chipmaker to ride the AI infrastructure boom into trillion-dollar territory. The South Korean memory chip maker crossed the $1 trillion market-value threshold for the first time on Wednesday, joining rivals Samsung Electronics and Micron Technology in a rally fueled by booming demand for artificial intelligence hardware. SK Hynix shares closed 9.3% higher after surging nearly 15% during trading, pushing the company's valuation above 1,600 trillion won, according to Reuters."
"The rally comes as AI companies race to secure advanced memory chips for data centers and AI accelerators, especially those tied to Nvidia. Demand for high-end memory chips used in AI systems has tightened supply and pushed prices higher across the industry. Memory chip prices reportedly doubled in the first quarter and are expected to rise further as AI data center expansion continues to strain global supply chains."
"The result has been a sharp boost in earnings expectations for major memory makers, who are now benefiting from both higher prices and long-term supply shortages. The surge is not limited to SK Hynix. Samsung Electronics reached the trillion-dollar milestone earlier in May, while Micron crossed it this week after a jump in its share price. Together, the three companies dominate the advanced memory chip market that feeds the AI infrastructure boom."
Read at TechRepublic
Unable to calculate read time
Collection
[
|
...
]