SK Hynix, Micron Join $1 Trillion Market Cap Club | Bloomberg Tech 5/27/2026
Why It Matters
The market is repricing memory suppliers as core AI-infrastructure plays, which could reshape capital flows, industry valuations and supply-chain investment; at the same time, export-control enforcement and alleged smuggling risk disrupt access to critical components and invite greater regulatory scrutiny.
Summary
Micron and SK Hynix have each surpassed $1 trillion in market value as investors pour into memory names powering AI, driven by surging demand for high-bandwidth memory that pushed quarterly revenues up more than 200% and sent share prices dramatically higher. Analysts note unprecedented growth—Micron nearly tripled revenue last quarter and is up more than 70% in May alone—yet valuations remain unusually low on forward earnings, stoking debate over whether AI has broken memory’s historical cyclicality. UBS raised its price target sharply for Micron, arguing the stock deserves multiples closer to leading AI chipmakers, while other strategists warn of peak-earnings risk. The rally and lofty valuations come amid renewed export-control scrutiny after Taiwanese prosecutors detained three suspects accused of smuggling NVIDIA AI chips to China via Japan, highlighting geopolitical and compliance risks for the sector.
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