SK Hynix and Micron have joined the $1 trillion-plus market-cap group as demand for memory chips surged. SK Hynix’s stock price rose about 1000% over 12 months, and Samsung was also added recently. The group now includes 14 companies, including Berkshire Hathaway, Meta, Tesla, Saudi Aramco, Broadcom, TSMC, Amazon, Alphabet, Microsoft, Apple, and Nvidia. Combined market caps total about $35 trillion, slightly above America’s GDP. AI is presented as the main driver, with only Berkshire Hathaway and Saudi Aramco having little direct AI exposure. The valuation question centers on whether AI growth justifies the money, with private firms like OpenAI and Anthropic valued near $1 trillion each.
"It is becoming easier to get into the $1 trillion market-cap club. SK Hynix and Micron Technology now belong because of the demand for memory chips. SK Hynix's 12-month stock price jump reached 1000%. The two joined Samsung, which was recently added to the list."
"The $1 trillion plus list has 14 members. (The club had only one member in 2018, and that was Apple.) Currently, the companies with $1 trillion-plus market caps are SK Hynix, Micron, Samsung, Berkshire Hathaway, Meta ( NASDAQ: META | META Price Prediction), Tesla, Saudi Aramco, Broadcom, TSMC, Amazon ( NASDAQ: AMZN), Alphabet, Microsoft ( NASDAQ: MSFT), Apple, and Nvidia (NASDAQ: NVDA). Together, their market caps are about $35 trillion, which is slightly more than America's GDP."
"How did we get here? AI. The only two companies in the $1 trillion market-cap club that hardly touch AI are Berkshire Hathaway and Saudi Aramco. Saudi Aramco was founded in 1933 as California-Arabian Standard Oil. Berkshire Hathaway was founded by Warren Buffett in 1965. Actually, Berkshire Hathaway's predecessors date back to 1929."
"The trillion club is based on two factors. The first is that AI adoption will reach the universal stage of individual human use. This might happen if Elon Musk's plan for every human to have a humanoid robot comes true. It is more likely that the use of AI will move worldwide without robots. And, much of this distribution will happen because the applications will be free. And enterprise and government adoption will also need to be nearly universal."
Read at 24/7 Wall St.
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