Memory chip manufacturer SK Hynix achieved a historic $1 trillion market valuation Wednesday, becoming the latest semiconductor company to reach this significant milestone amid an artificial intelligence-fueled market surge.
The South Korean company’s stock price soared by as much as 14.9%, pushing its market capitalization to a record 1,680 trillion won ($1.12 trillion) and helping drive the country’s main stock index to an all-time high.
SK Hynix now joins its competitors Samsung Electronics and Micron Technology in the exclusive trillion-dollar club. Samsung first crossed this threshold on May 6, while Micron achieved the milestone just one day before SK Hynix on Tuesday.
The remarkable growth stems from intense demand for advanced memory chips essential for AI processing systems, including those created by companies like Nvidia. This heightened demand has created supply shortages and pushed prices significantly higher, creating substantial profits for leading semiconductor manufacturers.
Memory chip pricing has experienced dramatic increases, doubling during the first quarter compared to the previous period. Industry forecasts predict prices could climb an additional 63% in the current quarter as AI data center requirements strain supplies typically allocated for smartphones, laptops, and vehicles.
This achievement makes South Korea notable as the first nation outside the United States to have multiple companies reach trillion-dollar valuations. Only three Asian corporations have joined this exclusive group, including TSMC.
The semiconductor rally propelled South Korea’s main stock index up as much as 5.09% to 8,457.09, setting a new record. The rapid gains were so significant they triggered automatic trading restrictions designed to temporarily pause algorithmic transactions.
Samsung and SK Hynix now represent half of the index’s total market value following Wednesday’s surge. The benchmark index has become the world’s top performer during the global AI boom, climbing 91% this year after gaining 76% in the previous year.
“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, said in a report, raising target prices for SK Hynix and Samsung by 18.8% and 14.6% to 3.8 million won per share and 550,000 won, respectively.
SK Hynix shares were trading around 2.3 million won on Wednesday.
Samsung’s stock also climbed as much as 8% to 323,000 won Wednesday, reaching a fresh record high. The gains came as unionized workers in South Korea approved a tentative wage agreement, preventing a potential strike that could have disrupted global chip production.
Investment firm UBS announced Tuesday it had more than tripled its price target for Micron, citing “the structural changes AI has driven to the entire memory complex.”
Year-to-date performance has been exceptional across all three companies: Samsung shares have increased 149%, SK Hynix has gained 215%, and Micron has surged 245%.
Recent weeks have seen American retail investors pour billions into a new exchange-traded fund providing exposure to Samsung and SK Hynix stocks.
New South Korean leveraged ETFs connected to both semiconductor companies experienced strong debuts Wednesday, posting double-digit gains as chip stocks continued their rally.
The Korea Financial Investment Association’s educational website temporarily went offline Wednesday as investors rushed to complete required courses for trading leveraged ETFs, according to local media reports.
