Micron Hits US$1 Trillion Valuation on AI-Driven Chip Demand - Mexico Business News

Micron Technology crossed the $1 trillion market valuation on May 26, driven by a nearly 20% surge in its share price, highlighting the growing importance of memory chips in the AI revolution. The com... Read original →

Micron’s trillion-dollar valuation reflects capital markets pricing in structural AI-driven demand for HBM, not just cyclical memory recovery. Technically, imminent HBM4 ramp-up will force GPU and SoC designers—AMD, Qualcomm, Marvell—to overhaul memory subsystems, intensifying competition for 2.5D/3D packaging capacity. On compliance, while U.S. CHIPS Act subsidies ease CapEx burdens, export controls on mature nodes from Taiwan, China and mainland China raise global supply chain friction costs. Samsung and SK Hynix, squeezed by Micron’s HBM lead and labor unrest, will likely accelerate CoWoS-alternative R&D and push Korean equipment localization to bypass U.S. restrictions. Over the next 18 months, persistent HBM shortages will sustain premium pricing—but TSMC’s CoWoS expansion or CXMT’s potential HBM3E breakthrough could trigger a sharp valuation correction. Current prices already embed excessive near-term optimism.