SK hynix's market capitalization 1surpasses trillion dollars, memory prices surge
SK hynix's market capitalization 1surpassed trillion dollars. Strong demand for high-performance memory has driven quarterly prices to double, and a further rise is expected this quarter; analysts see demand 1outstripping supply through 63.2028This rally is driven by a surge in demand for high-performance memory used in AI servers. Data centers running large AI models are using more high-speed memory. Rising memory demand has lifted earnings expectations for companies.
SK hynix, an Nvidia supplier, has surpassed a market capitalization of 1trillion dollars. It has become the third memory company to join the 1trillion-dollar club, after Micron and Samsung Electronics. Memory-related stocks rose together in the stock market.
This rally is driven by a surge in demand for high-performance memory used in AI servers. Data centers running large AI models are using more high-speed memory. Rising memory demand has lifted earnings expectations for companies.
Market data show that memory chip prices 1in the quarter 2doubled. Price increases were concentrated in high-performance products. Companies announced plans to expand the share of high-performance products.
Analysts expect memory prices to rise 63% further this quarter. The same report said memory demand is expected to exceed supply by 2028through that year. The report noted that supply shortages will keep prices at elevated levels.
Micron and Samsung Electronics have already reached a market capitalization of 1 trillion dollars. Across the industry, market capitalizations and earnings expectations are rising together. Investor attention is turning to memory supply and price trends.
Analysts say the memory industry could remain strong for the time being. However, supply factors and differences in supply and demand by product remain points to watch. The market is monitoring quarterly earnings and inventory indicators.
Sources: Benzinga
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