Micron and SK Hynix Top $1 Trillion on AI Chip Demand Surge

Memory chip makers Micron Technology and SK Hynix saw their market values surge above $1 trillion for the first time today, driven by insatiable demand from AI firms.

Micron's stock was up more than 19% after investment bank UBS tripled its price target from $535 to $1,525 per share, citing long-term agreements with major customers and partially fixed pricing. "We believe the market will start to put a more 'normal' multiple on the stock," UBS said.

SK Hynix shares gained more than 11% on the tailwinds. Micron's stock has gained over 214% since the start of the year; SK Hynix is up about 250%. Demand for high-bandwidth memory and DRAM chips, vital for AI servers and accelerators, has outpaced production, allowing both companies to hike prices and accelerate profits.

Samsung Electronics crossed the $1 trillion mark a few weeks ago. Intel, AMD, Qualcomm, and Marvell have also hit all-time highs recently.