Samsung Hits $1 Trillion Valuation, Joining TSMC in Elite Club

Samsung Electronics's market valuation topped $1 trillion after shares in the world's largest memory maker more than quadrupled over the past year on booming demand for the chips used in artificial intelligence.

The milestone came as the South Korean company's shares rallied 14 percent on Wednesday, making it only the second Asian firm after Taiwan Semiconductor Manufacturing Co. to hit the mark. Samsung's gain also boosted the Kospi benchmark by more than 6 percent, driving it above the 7,000 level for the first time.

Samsung, alongside memory peer SK Hynix and TSMC, sits at the heart of a transformation that has made Asia a cornerstone of the global AI ecosystem, pairing chipmaking dominance with expanding data infrastructure. That shift has fueled a powerful rally in regional tech stocks — SK Hynix and TSMC have also reached record highs — as investors bet on sustained demand for advanced chips and computing capacity.

“The trillion dollar threshold carries material weight beyond the symbolism,” said Dave Mazza, chief executive officer at 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.”

Just days ago, Samsung's semiconductor arm brought in historic profit over the March quarter, beating expectations with a 48-fold jump as AI data center orders delivered hefty margins. Analysts expect the division to build on its record-breaking profit over the next several quarters as contract prices continue their steep upward trajectory amid limited supply.

Meanwhile, Apple has held exploratory discussions about using Samsung to produce the main processors for its devices in the US, a move that would offer a secondary option beyond longtime partner TSMC.

“If investors do some work on Samsung Electronics we think they will conclude that the investment opportunity is attractive even if they have missed its performance up until now,” said Sam Konrad, investment manager at Jupiter Asset Management. “The memory market is currently undersupplied, and Samsung said that 2027 will see tighter supply and demand than 2026, so prices for NAND and DRAM are likely to continue rising.”

Foreigners are likely driving the latest rally, with local media citing a deal between Interactive Brokers and Samsung Securities allowing US investors direct access to purchase Korean stocks. Global investors bought a net 3.1 trillion won ($2.1 billion) worth of Kospi shares on Wednesday. The inflows also helped boost the South Korean won, which climbed more than 1 percent against the dollar to be day's best-performing currency in Asia. 

That said, Samsung is facing some challenges too. The chip unit's earnings growth contrasts with declines in Samsung's mobile and displays operations, which are fighting rising materials and components prices. The profits generated by the AI boom are also prompting Samsung employees to demand a bigger share, with workers threatening an 18-day general strike later this month.

Still, the stock is expected to rise around 22 percent over the next 12 months, according to sell-side analyst estimates compiled by Bloomberg. It is trading at 6 times one-year forward earnings, down from 14.4 times in October.

The dizzying gains in Samsung and SK Hynix shares — which together command a weightage of more than 43 percent in the benchmark Kospi index — have helped make Korea one of the world's hottest markets.

The Korean duo have also played a role in lifting Asia's stock benchmark to all-time highs. As the companies ride the AI spending boom, investors argue that memory is in a super-cycle of demand that's breaking a decades-old cycle of boom and bust.

“Corporate earnings in aggregate keep getting stronger and it's mainly coming from one place — from the technology sector,” said Mark Davids, APAC head of the emerging markets and Asia Pacific equities team at JPMorgan Asset Management. Samsung's profits reflect a “very unusual period where these companies can achieve outsized profits,” he said.

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