AI CHIPS
AI chipmakers ride the data centre boom
SK Hynix and Micron have both passed the $1tn valuation mark, as demand for AI data centres continues to lift chipmakers.
SK Hynix shares jumped 10% on Wednesday, with its stock now more than tripling this year.
The South Korean company is a key supplier to Nvidia, whose chips power many AI systems.
Micron also saw its shares rise nearly 20% after UBS tripled its price target for the US memory chipmaker.
Both companies now join the $1tn club alongside Nvidia, Amazon, Apple, Microsoft, Alphabet and Meta.
The surge is being driven by huge global demand for advanced chips used to train and run AI tools.
That demand has also created a memory chip shortage, boosting sales for firms like SK Hynix, Micron and Samsung.
The main points:
AI data centres are pushing chip stocks higher.
Memory chip shortages are helping boost sales.
Investors are still excited, but bubble fears are growing.
Samsung, another major chipmaker and Nvidia supplier, passed $1tn earlier in May.
Its shares also rose more than 6% after workers approved a pay deal, avoiding a strike.
Nvidia’s suppliers are feasting
Nvidia remains the biggest winner from the AI boom.
In October, it became the first company to reach a $5tn valuation, while Microsoft and Apple have also recently passed $4tn.
Still, some investors are warning that AI stocks may be overheating, with concerns growing over a possible bubble.
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