South Korean semiconductor giant SK Hynix has officially surpassed a $1 trillion market valuation, marking a significant milestone driven by the relentless global demand for artificial intelligence hardware. The company’s stock experienced a sharp 11% increase during Wednesday’s trading session, extending a remarkable year-to-date rally that has seen its share price climb approximately 250%. This growth is largely attributed to the company’s critical role as a primary supplier of high-bandwidth memory chips, which are essential components for the AI servers and accelerators produced by industry leaders like Nvidia.

This achievement mirrors the recent success of domestic competitor Samsung Electronics, which also eclipsed the $1 trillion market cap threshold just weeks prior. Together, these two tech powerhouses represent over 40% of South Korea’s benchmark Kospi index. The heavy concentration of these chipmakers within the index has been a primary driver of the Kospi’s near-doubling in value since the beginning of the year, highlighting the profound influence of the AI sector on the broader South Korean economy.

While the rapid ascent has sparked concerns among some analysts regarding market volatility and potential exposure to supply chain vulnerabilities, industry experts suggest that the rally may be supported by strong underlying fundamentals. Strategic assessments indicate that earnings forecasts for both SK Hynix and Samsung Electronics have been revised upward at a pace that outstrips their share price growth. Consequently, some market observers argue that the valuations for these “twin towers” of the semiconductor industry remain attractive, suggesting that the current momentum could be sustainable as the global infrastructure for AI continues to expand.