Samsung crosses $1 trillion valuation as AI frenzy drives historic rally, lifting shares over 15%

Shares of Samsung Electronics surged greater than 15% Wednesday, pushing the chip big’s market capitalization previous the $1 trillion mark as buyers continued to pile into synthetic intelligence-linked shares.

Samsung grew to become the second Asian firm to cross the $1 trillion mark, after TSMC. The firm first crossed that $1 trillion market capitalization threshold on Feb. 26, based on FactSet knowledge.

The firm’s inventory has breached a report excessive and is on target for the biggest single-day acquire on report, knowledge from FactSet confirmed.

The rally adopted Samsung Electronics’ record first-quarter earnings final week. Operating revenue emerged greater than eightfold to 57.2 trillion received, whereas income climbed to a report 133.9 trillion Korean received.

Samsung’s first-quarter working revenue additionally topped its full-year 2025 revenue of 43.6 trillion received.

The positive aspects additionally adopted Bloomberg report that Apple has held exploratory talks with Samsung and Intel to provide chips for Apple units within the US, probably diversifying past longtime provider TSMC.

Shares of South Korean chip behemoth SK Hynix additionally jumped greater than 10%, serving to push the benchmark index Kospi greater than 5% to top 7,000 for the primary time.

Sales of high-bandwidth reminiscence, or HBM chips, have boosted Samsung’s profitability, however the firm continues to face intense competitors after dropping its early lead within the HBM market to rival SK Hynix.

Samsung has been working to slender the hole with SK Hynix within the fast-growing AI reminiscence section. In February, the corporate mentioned it had turn out to be the world’s first agency to begin mass production of HBM4 chips and begin deliveries to undisclosed clients.

HBM4 represents the sixth and newest era of high-bandwidth reminiscence know-how. The chips are anticipated to play a key function in Nvidia’s upcoming Vera Rubin AI structure, which goals to energy superior AI workloads in knowledge facilities.

Analysts mentioned the sharp rally in Samsung Electronics has been pushed by booming AI-related reminiscence demand, tightening provide circumstances and enhancing competitiveness in high-bandwidth reminiscence chips.

“There is a tremendous shortage in DRAM and NAND memory chips due to torrid AI demand, which is very memory hungry due to AI’s high bandwidth and storage needs,” mentioned Morningstar’s know-how fairness analyst Yu Jing Jie.

DRAM chips are quick, risky reminiscence chips that briefly retailer knowledge whereas processors actively use it, whereas NAND chips are slower, non-volatile storage chips that retain knowledge even when units are powered off.

While reminiscence makers are scrambling to broaden manufacturing, Yu additionally famous that new semiconductor capability usually takes two to a few years to come back on-line, that means provide is more likely to stay constrained within the close to time period. That has fueled expectations for stronger earnings progress and margins over the following one to 2 years.

Even with new factories anticipated to ramp up throughout the business over the following a number of years, Rolf Bulk, head of semiconductor and infrastructure at The Futurum Group, mentioned present excessive reminiscence costs and powerful earnings for Samsung and its friends are more likely to stay supported for a while.

Bulk added that buyer suggestions on Samsung’s newest HBM4 merchandise has been optimistic, serving to slender the know-how hole with SK Hynix.

While SK Hynix nonetheless leads the HBM market with an estimated 55% share in contrast with Samsung’s roughly 25%, Bulk mentioned buyers are much less involved in regards to the hole as a result of typical DRAM profitability has lately overtaken HBM margins.

—CNBC’s Dylan Butts contributed to this report.