Samsung Electronics Co. has achieved a market valuation of $1 trillion, following a surge in its share price, which has more than quadrupled over the past year, driven by robust demand for memory chips essential for artificial intelligence applications.
This landmark valuation was reached as Samsung’s shares jumped as much as 13% on Wednesday, making it only the second Asian company, alongside Taiwan Semiconductor Manufacturing Co. (TSMC), to reach this milestone. The rise in Samsung’s stock propelled the Kospi index above the 7,000 mark for the first time.
Together with fellow memory manufacturer SK Hynix Inc. and TSMC, Samsung plays a critical role in the evolution of Asia into a key player in the global AI ecosystem, combining its strength in chip production with advancing data infrastructure. This trend has led to a significant rally in regional tech stocks, with both SK Hynix and TSMC also attaining record highs this month as investors anticipate enduring demand for sophisticated chips and enhanced computing capabilities.
“The trillion-dollar threshold carries material weight beyond the symbolism,” remarked Dave Mazza, CEO of Roundhill Investments in New York. “More broadly, it reflects a market judgment that memory’s role in the AI infrastructure stack is structural, not cyclical.”
Recently, Samsung’s semiconductor division reported historic profits for the March quarter, exceeding expectations with a 48-fold increase driven by substantial orders from AI data centers. Analysts forecast that this division will continue to report record profits over the upcoming quarters as contract prices rise sharply amidst constrained supply.
Additionally, Apple Inc. is reportedly in discussions with Samsung about potentially producing the main processors for its devices in the United States, which would offer an alternative to its long-time partner TSMC.
“If investors conducted due diligence on Samsung Electronics, they might conclude that the investment opportunity remains attractive even if they have missed its performance thus far,” stated Sam Konrad, investment manager at Jupiter Asset Management. He noted that the current memory market is undersupplied, and Samsung has indicated that the supply-demand imbalance will worsen in 2027 compared to 2026, suggesting further price increases for NAND and DRAM.
The recent rally appears to be driven by foreign investment, with reports indicating a deal between Interactive Brokers and Samsung Securities that grants U.S. investors direct access to Korean stocks. Global investors added approximately 2.9 trillion won ($2 billion) worth of Kospi shares on Monday, resuming net purchases after a holiday. The South Korean won appreciated up to 1.3% against the dollar, outperforming other emerging Asian currencies.
However, Samsung is also encountering challenges. While its chip division shows earnings growth, the mobile and displays segments are facing declines due to rising costs for materials and components. The profitability stemming from the AI boom has also led Samsung employees to demand a greater share, with workers threatening an 18-day general strike later this month.
Despite these challenges, analysts predict the stock will rise around 25% over the next year, based on estimates compiled by Bloomberg. Currently, it is trading at 5.9 times its one-year forward earnings, down from 14.4 times last October.
The significant gains in Samsung and SK Hynix shares, which together represent over 43% of the Kospi index, have contributed to South Korea becoming one of the hottest markets globally. The index rose by as much as 5.8% on Wednesday, prompting a halt in program buying due to a surge in futures.
Both companies have also contributed to pushing Asia’s stock benchmarks to all-time highs. As they benefit from the AI-driven spending boom, investors suggest that the memory sector is entering a super-cycle of demand, potentially breaking the historical pattern of boom and bust.
“Corporate earnings overall continue to strengthen, primarily driven by the technology sector,” noted Mark Davids, APAC head of the emerging markets and Asia Pacific equities team at JPMorgan Asset Management. Samsung’s profitability illustrates a “very unusual period where these companies can achieve outsized profits,” he added.
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Published on May 6, 2026
