SK Hynix Joins Trillion-Dollar Club as AI Memory Demand Drives Chip Rally

SK Hynix, the South Korean memory chip giant, crossed a $1 trillion market valuation for the first time on Wednesday, joining Samsung Electronics and Micron Technology in a historic rally fueled by AI infrastructure demand. Shares closed 9.3% higher after surging nearly 15% intraday, pushing the company’s valuation above 1,600 trillion won. The milestone makes SK Hynix one of only a handful of Asian companies ever to reach that level, as AI companies race to secure advanced memory chips for Nvidia-based data centers. Memory chip prices reportedly doubled in the first quarter and are expected to rise further as AI data center expansion strains global supply chains. SK Hynix's shares have more than tripled over the past year, reflecting investor expectations that demand will continue to outpace supply for years.

The rally has also transformed South Korea’s broader stock market. The KOSPI index surged as much as 5% in a single session, hitting record highs and briefly triggering a trading “sidecar” mechanism that pauses algorithmic trading during extreme volatility. At one point, SK Hynix and Samsung alone accounted for roughly half of the index’s market value. Analysts remain divided on the outlook: some see structural strength from multi-year AI infrastructure spending, with demand expected to exceed supply well into the next several years. Others warn that the momentum is heavily dependent on sustained AI capital spending, and any slowdown could trigger sharp reversals. Still, investor sentiment remains bullish, with brokerages raising price targets. The boom also raises policy questions about controlling AI hardware flows, especially given ongoing US export controls.