Samsung hits $1 trillion valuation on AI chip demand

On Wednesday, South Korean technology giant Samsung reached a $1 trillion valuation. The milestone occurred as the company’s shares surged more than 10%, driven by demand for chips to power artificial intelligence systems. With this valuation surge, Samsung becomes only the second Asian company to cross the $1 trillion threshold, following Taiwan-based semiconductor manufacturer TSMC.

The valuation milestone follows a blockbuster earnings report last week, in which Samsung posted profits eight times higher than the same period a year ago. This profit growth is primarily driven by high-bandwidth memory (HBM)—a specialized type of memory chip critical for running AI systems—which has significantly improved the company’s margins. Because every company building AI requires these chips, demand is surging while supply struggles to keep up, pushing prices higher and boosting Samsung’s profits. The global semiconductor industry is experiencing a chip shortage as the world’s three largest memory chip makers—Samsung, SK Hynix, and Micron—struggle to meet runaway demand from AI data centers. Consequently, all three companies have shifted investment away from consumer chip businesses to ramp up HBM production. However, competition remains intense, with South Korean rival SK Hynix aggressively vying for the same market.

Beyond its memory business, Samsung’s potential expansion in the chip manufacturing, or foundry, sector also contributed to investor optimism. Reports emerged yesterday that Apple has been in talks with both Samsung and Intel to manufacture chips for Apple devices on U.S. soil. Apple has long relied almost exclusively on TSMC in Taiwan for its chip production. If Samsung lands the foundry deal, it would mark a significant shift in the global semiconductor supply chain.

Despite Wednesday’s historic surge, Samsung still faces internal headwinds. Workers are threatening an 18-day strike later this month, demanding a larger share of the company’s AI-driven profits. Meanwhile, the company’s phone and TV divisions, which also need to buy those same memory chips to build their products, are paying a steep price for the same chips powering Samsung’s record profits.

Why it matters

Samsung’s valuation milestone underscores the massive market shift toward high-bandwidth memory (HBM) for AI infrastructure, while potential manufacturing deals with Apple could fundamentally reorder the global semiconductor supply chain.