SK Hynix Hits $1 Trillion Market Value on AI Chip Boom

South Korean memory chipmaker SK Hynix surpassed $1 trillion in market value for the first time on Wednesday, joining global rivals Samsung Electronics and U.S.-based Micron Technology in reaching the historic milestone.

Driven by an unprecedented surge in artificial intelligence (AI) hardware demand, shares of SK Hynix closed up 9.3% after peaking at a 14.9% gain during the session. The rally pushed the company's market capitalization to a record 1,680 trillion won ($1.12 trillion) and propelled South Korea’s benchmark KOSPI index to an all-time high.

With this milestone, South Korea becomes the first country outside the United States to boast more than one company valued above $1 trillion, following Samsung’s entry into the exclusive club on May 6.

The financial explosion of top semiconductor firms stems from critical supply shortages of high-end memory chips used in AI chipsets, such as those designed by global tech giant Nvidia.

Data center expansion has heavily constrained the chip supply normally allocated for smartphones, laptops, and automobiles. Consequently, memory chip prices doubled in the first quarter alone and are projected to rise by up to 63% in the current quarter, delivering record profits for manufacturers.

Market analysts predict that demand will outstrip supply until 2028, keeping pricing high. Reflecting this optimism, investment firms have aggressively raised target share prices for both Korean tech giants.

The explosive chip rally saw South Korea’s KOSPI stock index climb 2.3% to close at 8,229.70, after hitting a peak of 8,457.09. The rapid surge triggered a "sidecar" trading curb, a regulatory mechanism that temporarily halts automated algorithmic trading to prevent market volatility.

The trading volume was heavily amplified by retail and institutional investors. The launch of new single-stock leveraged Exchange-Traded Funds (ETFs) tied to Samsung and SK Hynix fueled a buying frenzy. Local media reported that the Korea Financial Investment Association website temporarily crashed as thousands of individual investors rushed to complete mandatory online courses required to trade these complex financial products.

Despite the broader market index reaching record heights, the rally was highly isolated. Out of 918 regular shares traded on the KOSPI, only 75 advanced while 826 declined, highlighting how heavily the index relies on its dominant technology sector.