Jun 3, 2026
Two chipmakers recently surged in value, both crossing the trillion-dollar valuation line within a day of each other. It’s another unexpected gold rush, thanks to the AI boom.
South Korean company SK Hynix’s market capitalization went above $1 trillion last week, and its shares have climbed more than 250% since the start of the year, CNBC reported. SK Hynix “has emerged as a key supplier to AI chip giant Nvidia, cementing its position at the center of the global AI supply chain,” the report says.
Advertisement
The day before, American company Micron Technology’s market value also surpassed $1 trillion for the first time.
CNBC reported that Micron’s rally “came as UBS tripled its price target on the stock from $535 to $1,625 a share, citing long-term agreement opportunities with partially fixed pricing.” That price target could see the stock could continue to climb, or even double, CNBC said.
Why are memory chips so hot?
What’s behind the meteoric rise of these chipmakers?
They both make high-bandwidth memory (HBM) semiconductors. This hardware is essential for AI — it’s suddenly become “one of the industry’s most sought-after components,” according to Scientific American.
The trillion-dollar milestone “points to a larger shift in the AI supply chain,” Scientific American says.
While companies like Nvidia make graphics processing units (GPUs), the chips used to build AI systems, HBM “plays an equally important role behind the scenes,” according to a report from The PC Enthusiast.
“Modern AI models process vast amounts of data, and even the fastest processors can become bottlenecked if they cannot access that data quickly enough,” the report says. That’s where HBM chips come in, as they deliver “significantly more memory bandwidth than conventional memory technologies while maintaining good power efficiency.”
Advertisement
HBM chips are designed differently than the memory chips found “inside a laptop or phone,” Scientific American says. “Instead of spreading memory chips across a board, HBM stacks layers of memory vertically and places them close to the processor.”
How powerful are these chips? According to Scientific American, Micron’s HBM4 chips “can reach more than 2.8 terabytes per second of bandwidth and are designed for Nvidia’s next-generation Vera Rubin GPUs.”
Must Read
- You can now build wealth like a landlord for as little as $100 — and no, you don't have to chase down rent or take 3 A.M tenant calls
- Goldman Sachs used to hoard prime real estate deals for the ultrarich. Two ex-analysts just opened the door for $250
- Robert Kiyosaki begs investors not to miss this ‘explosion’ — says this 1 asset will surge 400% in a year
Join 250,000+ readers and get Moneywise’s best stories and exclusive interviews first — clear insights curated and delivered weekly. Subscribe now.
Remarkable rally
So far in 2026, there’s been a remarkable rally for semiconductor stocks.
“Investors are snapping up stocks tied to central processing units and memory, needed to run and process agentic workloads, in a battleground once dominated by Nvidia,” CNBC reported. With global demand for chips leading to a “memory shortage,” Micron, SK Hynix and Samsung have been able to hike prices, the report says.
Samsung Electronics hit a $1 trillion valuation earlier in May, before Micron and SK Hynix. Samsung was the second Asian company to hit $1 trillion; the first was chip giant TSMC.
American companies Qualcomm, Advanced Micro Devices and Marvell Technology also hit new heights in May, and Intel was also “trading near all-time highs,” CNBC reported.
Scientific American cautions that “not every AI bet will pay off,” citing warnings of a possible bubble by Google’s Sundar Pichai and OpenAI’s Sam Altman, as well as concerns over the energy demand of data centers and stalls with data center construction.
You May Also Like
- Dave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake — here’s what it is and the simple steps to fix it ASAP
- Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how
- Millionaires under 43 are reshaping investing — just 25% of their portfolios are in stocks. Here’s where their money is going
- Robert Kiyosaki issues grim warning for baby boomers. Many could be ‘wiped out’ and homeless ‘all over’ the country. How to protect yourself now
Rebecca Payne has more than a decade of experience editing and producing both local and national daily newspapers. She's worked on the Toronto Star, the Globe and Mail, Metro, Canada's National Observer, the Virginian-Pilot and Daily Press.
