SK Hynix, Micron Join $1 Trillion Market Cap Club | Bloomberg Tech 5/27/2026

Micron and SK Hynix hit $1 trillion valuation

Both memory chipmakers joined the trillion-dollar market cap club in May, with shares up over 200% year-to-date as high-bandwidth memory becomes central to AI infrastructure buildout.

Revenue growth at staggering pace

Micron's revenue nearly tripled last quarter, marking the fastest growth since the 1990s, while the stock jumped 70% in May alone—the biggest monthly gain since December 1987.

Valuation debate: cyclical vs. structural shift

Despite growth, Micron trades under 10 times forward earnings as investors worry about peak earnings in a historically cyclical industry, though some argue AI demand represents a new paradigm.

UBS sees massive upside ahead

UBS tripled its price target for Micron, predicting the company could reach a $1.8 trillion market cap and deserves a 15x earnings multiple comparable to Nvidia rather than the historical 5x.

Nvidia chip smuggling ring uncovered

Taiwanese prosecutors suspect three individuals of smuggling Nvidia chips to China through Japan using falsified documents indicating Japan as the final destination.

Super Micro servers seized in transit

Authorities seized approximately 50 Super Micro servers before shipment, though at least one shipment reportedly reached China through the new Japanese transit route.

Jensen Huang urges tighter compliance

Nvidia's CEO publicly stated that Super Micro needs to tighten oversight of customers and compliance protocols regarding end-user verification.

Japan as legal workaround

Chinese companies are increasingly renting computing power in Japanese data centers—a practice that falls within U.S. export control bounds—while illicit smuggling attempts also shift toward Japan rather than traditional Southeast Asian routes.

Prepare for inevitable correction

Nancy Tengler advises investors to trim gains after an eight-week rally, noting that while such runs historically deliver 12% returns a year later, volatility is certain and hedge funds are rapidly pivoting between hardware and software.

Productivity-driven bull market continues

Despite expecting near-term volatility driven by Fed policy and Iran tensions, strategists view this as a sustainable productivity-driven bull market requiring nimble allocation between high-quality names.

SpaceX evolves into orbital hyperscaler

Peter Diamandis describes SpaceX as building an off-planet hyperscaler infrastructure, with successful Starship launches enabling orbital data centers to provide AI compute capabilities beyond terrestrial limits.

AI compute demand knows no bounds

SpaceX's IPO filing revealed ambitious plans for orbital data centers to meet massive compute needs, reflecting a broader race among hyperscalers to secure AI infrastructure both on Earth and in space.