Samsung Electronics' shares soared over 10% on Wednesday, propelling the company's market capitalization above $1 trillion, making it the second Asian firm after TSMC to reach this milestone, according to FactSet data [1]. This surge was driven by robust investor interest in artificial intelligence-linked stocks and followed Samsung's record-breaking first-quarter earnings, where operating profit jumped more than eightfold to 57.2 trillion won and revenue reached a record 133.9 trillion Korean won [1]. Notably, Samsung's first-quarter operating profit exceeded its full-year 2025 profit of 43.6 trillion won [1].
The rally was further supported by a Bloomberg report indicating that Apple has held exploratory talks with Samsung and Intel about producing chips for Apple devices in the U.S., potentially diversifying its supply chain beyond TSMC [1]. The positive sentiment extended to other South Korean chipmakers, with SK Hynix shares rising over 9% and the Kospi index climbing more than 5% to surpass 7,000 for the first time [1].
Samsung's profitability has been bolstered by strong sales of high-bandwidth memory (HBM) chips, although the company faces stiff competition from SK Hynix, which has overtaken Samsung's early lead in the HBM market [1]. In February, Samsung announced it was the first company to begin mass production of HBM4 chips and had started deliveries to undisclosed customers [1]. HBM4, the latest generation of high-bandwidth memory, is expected to play a significant role in Nvidia's upcoming Vera Rubin AI architecture, which targets advanced AI workloads in data centers [1].
According to Morningstar, the combination of strong AI infrastructure demand and tight supply due to capacity constraints has driven up semiconductor chip prices and input costs, particularly in South Korea [1].
CONCLUSION
Samsung's record-breaking rally and $1 trillion valuation underscore the market's enthusiasm for AI-driven growth in the semiconductor sector. With robust earnings, strategic partnerships, and leadership in next-generation memory technology, Samsung is well-positioned amid intensifying competition and rising chip prices.