SK Hynix, Micron Join $1 Trillion Market Cap Club

2026-05-27 · Source: Bloomberg Tech · Field: Technology & Digital — Artificial Intelligence & Machine Learning, Capital Markets & Investment Management, Emerging Technologies & Innovation · Depth: Intermediate, extended

Summary

Micron and SK Hynix have joined the \$1 trillion market cap club, driven by massive demand for High Bandwidth Memory (HBM) in AI infrastructure. Micron's revenue nearly tripled last quarter, with its stock up over 70% in May and more than 200% year-to-date. UBS significantly raised Micron's price target, suggesting it deserves valuation multiples comparable to Nvidia. Concurrently, Taiwanese prosecutors are investigating three individuals for allegedly smuggling Nvidia AI chips to China via Japan, involving Supermicro servers. In AI software, Cognition raised over \$1 billion at a \$26 billion valuation for its AI software engineer, Devin, which is nearing a \$500 million revenue run rate and aims for \$1 billion this year. SpaceX achieved a major Starship milestone, with an early investor predicting a merger with Tesla and a future of double-digit GDP growth fueled by AI and robotics. The AI boom is also driving global energy demand, necessitating grid modernization, while UBS anticipates AI will enhance productivity and capacity, potentially impacting jobs.

Key takeaway

For technology executives and investors evaluating the long-term trajectory of the AI market, recognize that the current surge in memory chip valuations, driven by High Bandwidth Memory (HBM) demand, reflects a fundamental shift rather than just cyclicality. Be prepared for market corrections, but maintain long-term positions in high-quality AI infrastructure and platform companies, as AI is poised to drive sustained economic growth and productivity gains across industries.

Key insights

The AI boom is driving unprecedented demand and valuation for HBM chipmakers and AI software, while also raising geopolitical and economic questions.

Principles

• High Bandwidth Memory (HBM) is central to AI infrastructure build-out.
• AI systems can significantly enhance software engineering efficiency.
• AI-driven productivity can free up capacity for growth and client service.

Method

Cognition's Devin operates as a "compound system" integrating various AI models to serve customers, positioning itself as a neutral "Switzerland" in the AI ecosystem.

In practice

• Implement AI tools like Co-pilot to improve personal and professional efficiency.
• Utilize AI software engineers (e.g., Devin) to automate >90% of internal code writing.

Topics

• High Bandwidth Memory
• AI Infrastructure
• Semiconductor Market
• AI Software Engineering
• SpaceX Starship
• Export Controls
• Market Valuation

Best for: Entrepreneur, Investor, Executive, CTO

Related on AIssential

• SK Hynix Inches Near US$1tn Market Cap as AI Demand Surges — AI infrastructure demand is rapidly propelling memory chip manufacturers like SK Hynix to unprecedented market valuations.
• The AI Memory Tax & the Bifurcation of AI Scaling Laws — Memory has transitioned from a commodity to a strategic asset due to AI's high bandwidth demands.
• AI boom: $1 trillion mcap club swells to 15 amid chipmaker rally - Business Standard — The AI boom is significantly expanding the \$1 trillion market-cap club, particularly for semiconductor and tech firms.
• BREAKING: Samsung Hits $1 Trillion After BREAKING Big Tech Profit Records — AI-driven demand for memory chips is reshaping the semiconductor industry and driving record profits for key players.
• AI-Centric Data Centres Drive Profitable Period for Samsung — AI-driven demand for HBM and data center infrastructure is fueling unprecedented growth in the semiconductor industry.
• The New Chip War — And the Winners Nobody Expected — SK Hynix's early, risky bet on HBM technology created a near-monopoly critical to the AI industry.

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Editorial summary, takeaway, and curation by AIssential. Original article published by Bloomberg Tech.