Booming AI chip demand helps create two new $1T club members
The demand for AI chips has led to significant stock market gains for SK Hynix and Micron, both of which have surpassed a $1 trillion valuation. This surge is attributed to the increasing need for advanced computer chips in AI data centers, resulting in a global memory chip shortage. As a result, these companies join other tech giants like Nvidia and Amazon in the exclusive $1 trillion club.
- ▪SK Hynix's stock price has more than tripled since the beginning of the year, with a 10% increase on Wednesday.
- ▪Micron's shares rose nearly 20% after UBS raised its stock price target for the company.
- ▪The global demand for AI chips has significantly boosted sales for manufacturers like SK Hynix and Micron.
Opening excerpt (first ~120 words) tap to expand
Booming AI chip demand helps create two new $1tn club members2 hours agoShareSaveAdd as preferred on GoogleOsmond ChiaBusiness reporterSK HynixEmployees of SK Hynix, a South Korean chip manufacturing giantThe stock market valuations of chipmakers SK Hynix and Micron have risen above the $1tn (£740bn) mark, driven by a boom in artificial intelligence (AI) data centres.Shares in South Korea's SK Hynix, a key supplier to AI chip giant Nvidia, jumped by 10% on Wednesday, continuing a rally that has seen its share price more than triple since the start of this year.On Tuesday, US memory chipmaker Micron's shares rose by almost 20% after investment bank UBS tripled its stock price target for the company.Both companies join a growing group of firms with valuations above $1tn, including…
Excerpt limited to ~120 words for fair-use compliance. The full article is at Bbc.
Discussion
0 commentsMore from Bbc
