Samsung Electronics has crossed $1 trillion in market valuation for the first time, a significant milestone driven by surging demand for artificial intelligence (AI) chips and a broader rally in semiconductor stocks. Samsung is the world’s largest memory chipmaker.
According to Bloomberg, the company’s shares have more than quadrupled over the past year, with an additional jump of nearly 11–12% on May 6 pushing its market capitalisation over the trillion-dollar threshold. It becomes only the second Asian company after Taiwan Semiconductor Manufacturing (TSMC) to reach this level.
What led to the surge?
The rally is closely tied to Samsung’s position in the global chip supply chain. The company alongside SK Hynix supplies critical components, particularly high-bandwidth memory (HBM), dynamic random access memory (DRAM), and the NAND chips used in AI servers and data centres.
"HBM4 sales will account for more than half of total HBM revenue from the third quarter, and will also make up a majority for the full year," Kim Jae-june, executive vice president of the memory division, said during the company’s earnings call. "This year's HBM revenue is expected to grow more than threefold from a year earlier."
Bloomberg reported that rising demand for AI infrastructure has shifted memory chips from a cyclical business to one increasingly driven by structural, long-term demand.
Financial gains
Financial performance has reinforced this momentum. Samsung’s semiconductor division posted a record-breaking profit in the March quarter, with earnings rising 48-fold year-on-year.
The chip division’s operating profit reached 53.7 trillion won (about $36.15 billion) out of a total of 57.2 trillion won (about $39.3 billion), highlighting semiconductors' dominance in overall earnings.
Industry analysts cited by Bloomberg expect this trend to continue, with tight supply conditions likely to sustain elevated chip prices into 2027.
Kim also stated that AI-related demand continues to outpace supply. He noted that customers are already securing inventory for next year to avoid potential shortages.
Yes, but
Growth remains uneven across Samsung’s businesses. The company’s mobile and display divisions are under pressure from rising costs, even as semiconductors drive profits.
The company's mobile and network division saw profit fall 35% in the first quarter to 2.8 trillion won (about $1.9 billion), while the display division also recorded a 20% decline in operating profit to 400 billion won (about $270 million).
Labour tensions have also surfaced, with workers demanding higher compensation amid the earnings surge.
However, growth expectations remain. Bloomberg data showed Samsung trading at around 5.3 times forward earnings. Analysts anticipate the stock will gain roughly 30% over the next 12 months, supported by tight supply conditions in memory markets and sustained AI-driven demand.
Also Read: Samsung R&D launches startup incubation drive, offers up to $50,000 grants
According to Bloomberg, the company’s shares have more than quadrupled over the past year, with an additional jump of nearly 11–12% on May 6 pushing its market capitalisation over the trillion-dollar threshold. It becomes only the second Asian company after Taiwan Semiconductor Manufacturing (TSMC) to reach this level.
What led to the surge?
The rally is closely tied to Samsung’s position in the global chip supply chain. The company alongside SK Hynix supplies critical components, particularly high-bandwidth memory (HBM), dynamic random access memory (DRAM), and the NAND chips used in AI servers and data centres.
"HBM4 sales will account for more than half of total HBM revenue from the third quarter, and will also make up a majority for the full year," Kim Jae-june, executive vice president of the memory division, said during the company’s earnings call. "This year's HBM revenue is expected to grow more than threefold from a year earlier."
Bloomberg reported that rising demand for AI infrastructure has shifted memory chips from a cyclical business to one increasingly driven by structural, long-term demand.
Financial gains
Financial performance has reinforced this momentum. Samsung’s semiconductor division posted a record-breaking profit in the March quarter, with earnings rising 48-fold year-on-year.
The chip division’s operating profit reached 53.7 trillion won (about $36.15 billion) out of a total of 57.2 trillion won (about $39.3 billion), highlighting semiconductors' dominance in overall earnings.
Industry analysts cited by Bloomberg expect this trend to continue, with tight supply conditions likely to sustain elevated chip prices into 2027.
Kim also stated that AI-related demand continues to outpace supply. He noted that customers are already securing inventory for next year to avoid potential shortages.
Yes, but
Growth remains uneven across Samsung’s businesses. The company’s mobile and display divisions are under pressure from rising costs, even as semiconductors drive profits.
The company's mobile and network division saw profit fall 35% in the first quarter to 2.8 trillion won (about $1.9 billion), while the display division also recorded a 20% decline in operating profit to 400 billion won (about $270 million).
Labour tensions have also surfaced, with workers demanding higher compensation amid the earnings surge.
However, growth expectations remain. Bloomberg data showed Samsung trading at around 5.3 times forward earnings. Analysts anticipate the stock will gain roughly 30% over the next 12 months, supported by tight supply conditions in memory markets and sustained AI-driven demand.
Also Read: Samsung R&D launches startup incubation drive, offers up to $50,000 grants
