The 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. Both companies join a growing group of firms with valuations above $1tn, including technology giants Nvidia, Amazon, Apple, Microsoft, Google-owner Alphabet, and Meta, as there has been massive global demand for advanced computer chips that power AI tools, lifting the shares of companies associated with the technology. The surge in demand in recent years has led to a global memory chip shortage, pushing up sales for manufacturers like SK Hynix and Micron. Earlier in May. South Korea’s Samsung Electronics. Known for its smartphones and televisions, joined the $1tn club and became only the second Asian firm to reach the milestone after Taiwanese chipmaker TSMC. Samsung is now valued at around $1.34tn, with its shares more than doubling since the start of this year, it comes as South Korea’s benchmark Kospi stock index, which is dominated by tech firms, also hit a fresh record high. Microsoft and Apple have also recently crossed the $4tn valuation mark; some investors have warned of a potential AI bubble, questioning whether these companies are overvalued. On Tuesday, US memory chipmaker Micron’s shares rose by almost 20% after investment bank UBS tripled its stock price target for the company, the global demand for advanced computer chips continues to outpace supply, creating a surge in sales and stock prices for manufacturers. The growing influence of AI in various sectors has led to an increased need for powerful processing capabilities, which these chipmakers are well positioned to provide. The market’s reaction to this demand is evident in the rapid rise of SK Hynix and Micron’s valuations — the success of these firms is also attributed to their strategic partnerships and supply chain positions in the AI industry. South Korea’s tech sector is experiencing a period of rapid growth, with multiple companies achieving significant market milestones, but this trend is expected to continue as AI adoption expands across industries. The economic impact of the AI boom is being felt not only in the chipmaking industry but also in related sectors such as cloud computing and data storage. Despite the positive outlook, some market analysts remain cautious about the long-term sustainability of these valuations, as the recent performance of the Kospi index reflects the confidence of investors in the tech-driven economy of South Korea. The valuation of SK Hynix and Micron is a clear indicator of the market’s belief in the future of AI-driven technologies; As the market continues to evolve, the competition for market leadership in the chip industry is likely to intensify.