SK Hynix became the latest chipmaker to surpass a $1 trillion market valuation on Wednesday, joining rivals Samsung Electronics and Micron Technology as investor enthusiasm around AI-powered memory chips continued to surge. SK Hynix shares jumped 9.3% by the close after climbing nearly 15% during trading, pushing its market capitalization to a record 1,680 trillion won ($1.12 trillion). The rally also lifted South Korea’s KOSPI index to fresh highs. Samsung crossed the $1 trillion mark earlier in May, while Micron achieved the milestone a day earlier in the U.S.

The sharp gains have been fueled by soaring demand for advanced memory chips used in AI systems such as those powering NVIDIA hardware. Tight supply conditions have caused memory chip prices to skyrocket, with prices doubling in the first quarter and expected to rise further this quarter due to booming AI data center demand.

South Korea has now become the first country outside the United States to have more than one company valued above $1 trillion. The only other Asian company in the club is TSMC. Driven largely by Samsung and SK Hynix, the KOSPI index gained over 2% and briefly hit a record intraday peak, triggering temporary restrictions on algorithmic trading. Together, the two chipmakers now represent roughly half of the index’s total market value. The KOSPI has emerged as one of the world’s best-performing stock markets during the AI boom, soaring 95% this year after a strong rise last year as well.

Analysts expect memory chip demand to continue outpacing supply for years, supporting elevated prices and stronger earnings. Mirae Asset Securities raised its price targets for both SK Hynix and Samsung, while UBS significantly increased its forecast for Micron, citing long-term AI-driven changes in the memory chip industry.

This year alone, Samsung shares have climbed 149%, SK Hynix has surged 215%, and Micron has risen 245%. Investor excitement has also spread to exchange-traded funds linked to Samsung and SK Hynix. Newly launched leveraged ETFs tied to the companies posted strong double-digit gains on debut, attracting heavy retail investor interest. Analysts noted that ETF-related buying boosted futures markets and further supported stock prices. Retail demand became so intense that the Korea Financial Investment Association’s website briefly crashed as investors rushed to complete mandatory online courses required for leveraged ETF trading.

Disclaimer: This image is taken from Reuters.