Samsung nears $1 trillion valuation amid AI industry surge

Samsung reached a $1 trillion valuation on Wednesday as shares of the South Korean technology giant climbed more than 10%, fueled by the ongoing artificial intelligence boom, which continues to drive massive demand for semiconductor chips. The milestone makes Samsung only the second Asian company to surpass the trillion-dollar valuation mark, following TSMC.

The development follows a major earnings report released last week, in which Samsung reported profits eight times higher than the same period a year earlier.

As companies across the technology sector continue racing to build AI systems, demand for chips has exploded. Samsung plays a central role in that supply chain by manufacturing the memory chips required to power AI infrastructure. Demand has accelerated so rapidly that supply has struggled to keep pace, pushing memory chip prices significantly higher and helping boost Samsung’s profitability.

Another major factor behind Wednesday’s stock surge was a report suggesting that Apple has been in discussions with both Samsung and Intel about manufacturing chips for Apple devices within the United States.

Apple has historically depended heavily on TSMC’s operations in Taiwan for semiconductor production. If Samsung ultimately secures such a deal, it would represent a major shift within the global semiconductor manufacturing landscape and could significantly alter supply chain dynamics across the industry.

A major contributor to Samsung’s recent profit growth is high-bandwidth memory, commonly referred to as HBM. This category of memory chip has become critical for running modern AI systems and has substantially improved Samsung’s operating margins.

However, competition in the market remains fierce. Rival South Korean chipmaker SK Hynix is aggressively competing for dominance in the same AI-focused memory market, increasing pressure on Samsung to maintain its leadership position.

The broader AI boom has created a significant semiconductor shortage across the global industry. The world’s three largest memory chip producers — Samsung, SK Hynix, and Micron — are all struggling to meet surging demand from AI data centre operators. In response, all three companies have shifted investment away from certain consumer-focused chip businesses to expand production capacity for HBM chips, which offer much higher profit margins and have become essential components of large-scale AI infrastructure.

Despite the historic jump in valuation, Samsung continues to face several challenges. Workers at the company are reportedly threatening an 18-day strike later this month to demand a larger share of profits generated during the AI-driven semiconductor boom.

At the same time, Samsung’s own consumer electronics divisions — including its smartphone and television businesses — are also being affected by rising chip prices. Those divisions rely on the same memory chips that are now commanding premium prices due to demand from the AI industry, meaning Samsung’s hardware operations are paying substantially more for components that are simultaneously contributing to the company’s record profits.