Driven by surging demand for artificial intelligence (AI) chips, South Korean tech giant Samsung Electronics' market value has surpassed $1 trillion (approximately 3.95 trillion ringgit), becoming the second Asian company after TSMC to reach this milestone.
On Wednesday morning, Samsung Electronics' share price jumped as much as 12%, pushing the Korea Composite Stock Price Index (Kospi) above the 7,000-point mark for the first time. Over the past year, as demand for AI-related chips has soared, the share price of the world's largest memory chip maker has risen more than fourfold.
Analysts pointed out that Samsung Electronics, along with SK Hynix and TSMC, sits at the core of the global AI industry chain. As data center demand expands and high-end computing capabilities improve, Asia's position in the global AI ecosystem has become increasingly important, also fueling strong rallies among regional tech stocks. SK Hynix and TSMC also hit record highs this month.
Dave Mazza, CEO of New York investment firm Roundhill Investments, noted that surpassing the $1 trillion market cap is not only symbolic, but also reflects the market's recognition that memory chips play a role of "structural demand, not just cyclical volatility" in AI infrastructure.
Samsung Electronics’ semiconductor business recently reported its quarterly profit for the period ending March soared 48-fold year-on-year, setting a new record and far exceeding market expectations, mainly driven by AI data center orders. Analysts predict that with persistent supply constraints and rising contract prices, the business will continue its strong growth over the coming quarters.