Samsung crosses $1 trillion valuation as AI chip demands surge

Samsung Electronics crossed the $1 trillion market capitalisation mark on Wednesday after its shares surged more than 15% in a single session. This is the largest single-day gain in the company’s history, as investors flocked to AI-linked stocks following record quarterly earnings.

The rally makes Samsung only the second Asian company to reach that valuation, after Taiwan Semiconductor Manufacturing Company (TSMC). The tech giant had first crossed the $1 trillion threshold in February. Still, Wednesday’s surge cemented it at that level with significant momentum behind it.

Samsung’s profits jumped significantly in the first quarter. The company’s operating profit increased more than eight times to 57.2 trillion Korean won as its revenue reached a record high of 133.9 trillion won. This strong performance exceeded the company’s total projected operating profit for all of 2025, which is 43.6 trillion won.

Apple’s recent discussions with Samsung and Intel about making chips in the United States have increased investor interest. This could help Apple rely less on TSMC for its chip production. For Samsung, even the chance of getting a large contract from Apple has boosted investor confidence.

The Korean stock market rose as well. Shares of SK Hynix, Samsung’s main competitor in chips, increased by over 10%. This helped the Kospi index rise above 7,000 for the first time in history.

What is driving Samsung’s growth, and where the competition stands

Samsung’s earnings are improving because of the rising demand for high-bandwidth memory chips, or HBM. These chips are important for running large AI models. They help AI processors quickly access and move large amounts of data. This speed is crucial for training and operating the extensive AI systems used by companies like Nvidia, Google, and Microsoft.

“There is a tremendous shortage in DRAM and NAND memory chips due to torrid AI demand, which is very memory hungry due to AI’s high bandwidth and storage needs,” said Yu Jing Jie, technology equity analyst at Morningstar.

DRAM chips are fast storage chips that temporarily hold data while a processor is working. NAND chips are slower but keep data even when the device is turned off. Both types of chips are currently in short supply. Building new semiconductor production facilities usually takes two to three years, so the supply shortage is not likely to improve anytime soon.

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The company is trying to catch up with SK Hynix, which leads the high-bandwidth memory (HBM) market with about 55% of it, while it holds around 25%. In February, Samsung announced that it was the first company in the world to start mass production of HBM4 chips, the sixth and newest generation of high-bandwidth memory.

They have begun delivering these chips to unnamed customers. HBM4 chips are expected to play a key role in Nvidia’s upcoming Vera Rubin AI architecture, which will support next-generation AI data centres.

Feedback from customers about Samsung’s HBM4 products has been mostly positive, according to analysts. Investors are less worried about the market share difference with SK Hynix because conventional DRAM profits have recently become very strong. This gives The company a solid earnings base, even outside the high-end HBM market.