AI boom pushes Samsung to $1T

Samsung Electronics became only the second Asian company to hit a $1 trillion market cap on Wednesday, after shares surged more than 10%. The milestone was driven by the ongoing artificial intelligence frenzy, which has skyrocketed demand for the memory chips Samsung manufactures. Last week, the company reported an earnings bonanza — profits eight times higher than the same period last year — as every major AI builder scrambles for high-bandwidth memory (HBM), a critical component for running large-scale AI systems. The chip shortage has pushed prices higher, boosting Samsung’s margins, but competition is fierce: rival SK Hynix is aggressively targeting the same HBM market, and all three top memory makers (Samsung, SK Hynix, and Micron) have pulled investment from consumer chips to ramp up HBM production.

Adding to the momentum, reports emerged that Apple is in talks with both Samsung and Intel to manufacture chips on U.S. soil, potentially shifting some production away from TSMC in Taiwan. If Apple lands a deal with Samsung, it would reshape the global semiconductor supply chain. Yet Samsung still faces headwinds: workers are threatening an 18-day strike later this month, demanding a larger share of AI-driven profits. Meanwhile, Samsung’s own phone and TV divisions must buy the same expensive memory chips, eroding their margins even as the chip division celebrates record revenue. The AI boom has made HBM the most lucrative product in semiconductors, but it has also created internal tensions and external competitive pressures that could test Samsung’s ability to sustain its trillion-dollar valuation.