Micron and SK Hynix surpass $1 trillion valuation milestone on surging AI memory demand
Memory chip makers Micron Technology Inc. and SK Hynix Inc. saw their market values surge above $1 trillion for the first time today, driven by insatiable demand for their products from artificial intelligence firms.
Micron’s stock was up more than 19% today, as investors piled into the stock following a report from the investment bank UBS, which tripled its price target from $535 to $1,525 per share. The report cited long-term agreement opportunities with major customers and partially fixed pricing on those deals. “We believe the market will start to put a more ‘normal’ multiple on the stock and MU will continue to re-rate higher as more details emerge about the structural changes AI has driven to the entire memory complex,” UBS said in the report.
Micron’s rising stock added to the tailwinds behind the South Korean memory maker SK Hynix, whose shares gained more than 11% today.
Today’s rally extends a blistering run that has seen Micron’s stock gain just over 214% since the start of the year. The rise has been fueled by skyrocketing demand for the high-bandwidth memory and dynamic random-access memory chips that are vital components of AI servers and accelerators. SK Hynix has seen even bigger gains, with its stock up about 250% since the beginning of the year.
