Memory chip frenzy boosts SK Hynix, Micron

SK Hynix and Micron are being repriced by investors for a simple reason: AI systems need far more memory than the last generation of data-center hardware. Bloomberg reported on May 27 that both companies had topped $1 trillion in market value for the first time as memory demand reshaped the AI trade. The move pushed two companies once treated as cyclical commodity-chip makers into the same valuation conversation as the industry’s biggest AI infrastructure names. What changed was not just enthusiasm around semiconductors in general, but a sharper focus on high-bandwidth memory, or HBM, as a bottleneck inside AI servers. ### Why are memory chips suddenly at the center of the AI buildout? Micron CEO Sanjay Mehrotra said on March 18 that “in the AI era, memory has become a strategic asset for our customers,” after the company posted record fiscal second-quarter results. Micron reported revenue of $23.86 billion for the quarter ended Feb. 26, up from $8.05 billion a year earlier, with operating cash flow of $11.90 billion. The company said the results reflected a strong demand environment and tight industry supply. (bloomberg.com) SK Hynix has been making the same case from the supply side. In its 2026 market outlook, the company said memory semiconductors were emerging as a key driver of growth and profitability as AI infrastructure expands, and pointed specifically to HBM3E and HBM4 demand. SK Hynix’s newsroom has also framed memory as decisive for future AI performance, underscoring how central HBM has become to server design. (investors.micron.com) ### What exactly are investors betting on with SK Hynix and Micron? Bloomberg’s May 27 video said the surge in memory-chip stocks had sent SK Hynix and Micron above $1 trillion for the first time as investors bet the AI boom would lead to a sustained revaluation of the industry. That wording matters. The market is no longer treating memory only as a swing factor tied to PC and smartphone cycles; investors are paying for the role of memory in AI clusters. (news.skhynix.com) UBS gave the clearest example of that re-rating when it lifted its Micron price target to $1,625, according to Bloomberg. Bloomberg said that target was more than triple UBS’s previous $535 forecast and implied a market value of roughly $1.8 trillion. Mizuho also raised its Micron target to $1,150 on May 27 while maintaining an outperform rating, according to a Yahoo Finance report on the note. (bloomberg.com) ### Why does HBM matter more than ordinary memory in this story? HBM is the memory stacked next to AI processors to move large amounts of data quickly and with lower power use than conventional arrangements. That matters because advanced AI accelerators are limited not only by compute chips but by how much memory bandwidth they can access. SK Hynix’s 2026 outlook said the company expected HBM products to fuel what it called an AI memory supercycle, and Micron’s management has tied its own record results to the strategic value of memory in AI systems. (bloomberg.com) The result is that memory suppliers are now being discussed alongside GPU makers and foundries as core AI infrastructure vendors. Bloomberg’s framing and the analyst targets both reflect that shift, with memory no longer treated as a side beneficiary of AI spending. ### Can the companies actually expand fast enough to meet demand? (news.skhynix.com) SK Group Chairman Chey Tae-won said on June 2 that SK Hynix aims to double wafer capacity over the next five years, Reuters reported from Computex in Taipei. Bloomberg separately reported the planned expansion as a move to ease a global shortage of an essential AI component. Those comments suggest supply is still tight enough that investors are watching capacity plans almost as closely as earnings. (bloomberg.com) Micron’s next major checkpoint is June 24, when it will report fiscal third-quarter results and hold its earnings call, according to the company’s investor relations website and May 27 release. SK Hynix’s next milestones are likely to come through production updates tied to its HBM roadmap and the longer-term capacity buildout Chey outlined this week. (investors.micron.com) (msn.com)