Samsung Electronics has a market capitalization of US$1 trillion. The world’s largest memory maker’s stock price has more than tripled in the past year as demand for artificial intelligence AI chips surges. Shares of the South Korean company rose as much as 12% in early trading on Wednesday, making it the second Asian company after TSMC to reach the trillion-dollar milestone. The rise in its stock price also pushed the Korean stock market KOSPI index to exceed the 7,000-point mark for the first time.
Samsung Electronics and peers SK Hynix and TSMC are at the center of a transformation during which Asia has become the cornerstone of the global AI ecosystem. The shift has fueled strong gains in regional technology stocks - SK Hynix and Taiwan Semiconductor Manufacturing Co. also hit record highs this month, as investors bet on continued demand for advanced chips and computing power.
“The trillion-dollar threshold is not only symbolic but also substantive.” Dave, CEO of Roundhill Investments in New York Mazza said, "More broadly, this reflects the market's judgment that memory, as part of AI infrastructure, plays a structural rather than cyclical role."
Just a few days ago, Samsung Electronics announced that profits from its semiconductor division surged about 48 times in the first quarter, exceeding expectations. This was mainly due to AI's huge demand for memory, which brought huge profits. Analysts expect the unit to continue its record profit growth in the coming quarters as contract prices continue to rise strongly against a backdrop of limited supply.
In addition, Apple has discussed using Intel and Samsung Electronics to produce the main processors of its devices. This move will provide Apple with an alternative to long-term partner TSMC.
“If investors did some research on Samsung Electronics, we think they would conclude that this is an attractive investment opportunity, even if they have previously missed out on the company’s performance.” Sam, investment manager at Jupiter Asset Management Konrad said, "The memory market is currently undersupplied, and Samsung has stated that the supply and demand relationship in 2027 will be tighter than in 2026, so the prices of NAND and DRAM may continue to rise."
Foreigners are likely to be the main driver of this rise, with local media reporting that Interactive Brokers has reached an agreement with Samsung Securities to allow U.S. investors to buy Korean stocks directly. Global investors net bought nearly 2.9 trillion won ($2 billion) of KOSPI stocks on Monday, close to a record high; after the holiday, investors continued to net buy on Wednesday.