SK Hynix has dropped out of the exclusive $1 trillion market-cap club less than two weeks after joining it, following a sharp decline in its share price.

The memory-chip giant, which crossed the $1 trillion valuation milestone on May 27, has seen its market value fall to approximately $943 billion after a nearly 10% single-day decline in its stock.

Key Highlights

• SK Hynix surpassed a $1 trillion valuation on May 27.
• Market capitalization has since fallen to roughly $943 billion.
• About $57 billion in market value has been wiped out.
• Shares remain up more than 800% over the past year.
• The company remains a leader in AI-related memory chips.

AI Boom Fueled the Rally

SK Hynix has emerged as the dominant supplier of High Bandwidth Memory (HBM), a critical component used in AI accelerators and advanced data-center GPUs.

The company currently controls more than 57% of the global HBM market, making it one of the biggest beneficiaries of the artificial intelligence infrastructure boom.

Demand from hyperscale cloud providers and AI companies has driven strong pricing across:

• HBM memory
• DRAM chips
• NAND flash storage

Record Profitability

SK Hynix reported record first-quarter 2026 results, with operating margins reaching approximately 72%, among the highest levels ever seen in the semiconductor industry.

These margins were supported by:

• Strong AI-driven demand
• Tight supply conditions
• Significant memory price increases
• Expanding data-center investments worldwide

Why Investors Are Becoming Cautious

Despite the strong fundamentals, investors are increasingly aware of the cyclical nature of the memory-chip business.

Concerns include:

• Exceptionally high profit margins may not be sustainable.
• Additional HBM capacity from competitors could pressure prices.
• Any slowdown in AI infrastructure spending could affect demand.
• Changes in customer inventory levels could weaken pricing power.

Major competitors such as Samsung Electronics and Micron Technology are expanding their own HBM production capabilities, which could intensify competition over time.

Outlook

The long-term AI opportunity remains highly attractive for SK Hynix, thanks to its leadership in advanced memory technologies. However, the recent pullback highlights that even the strongest AI-related stocks can experience sharp volatility when expectations become extremely elevated.

Investors will be closely watching:

• HBM pricing trends
• AI data-center spending
• Memory-chip supply growth
• DRAM and NAND market conditions
• Competitive developments from Samsung and Micron

For now, SK Hynix remains one of the biggest winners of the AI era, but the recent correction serves as a reminder that semiconductor cycles can change quickly.