SK Hynix joins Samsung and Micron in reaching $1 trillion market cap as AI boom drives memory chip demand

SK Hynix, Samsung Electronics, and Micron each hit $1 trillion market capitalization this week. The three companies combined account for nearly all of the world's production of memory chips.

The AI boom has boosted demand for memory storage, a sector that was previously overlooked in the semiconductor industry. Both Samsung and SK Hynix reported record profits in the first quarter of the year.

Samsung workers protested and threatened to strike for 18 days this month over a disparity in bonuses compared with SK Hynix, before a deal was reached. Workers at SK Hynix could receive as much as $900,000 in bonuses this year, and Samsung employees could receive as much as $400,000 under the new agreement.

RBC analysts noted that South Korea's benchmark index, which has climbed to become the world's seventh-largest, is vulnerable to downturns because Samsung and SK Hynix represent about half of the index.