Samsung Electronics shares surged more than 12% on Wednesday, pushing the South Korean tech giant’s market capitalization past $1 trillion and making it the second Asian company after TSMC to reach the milestone. The rally was driven by overnight gains in U.S. AI-related stocks and record quarterly earnings, lifting South Korea’s Kospi index above 7,000 for the first time.
Record Earnings Fuel the Rally
The stock surge followed Samsung’s record first-quarter results reported last week. Operating profit rose more than eightfold to ₩57.2 trillion, while revenue reached an unprecedented ₩133.9 trillion. Samsung’s Q1 operating profit alone exceeded its entire projected profit for 2025, which stood at ₩43.6 trillion, according to CNBC.
Samsung’s market value reached approximately 1,500 trillion won ($1.03 trillion) in early Seoul trading, according to Reuters, tracking sharp gains in AI-related stocks in the U.S. overnight. The S&P 500 and Nasdaq Composite had notched record-high closes on Tuesday, lifted by Intel and other AI-linked names, as investors focused on strong quarterly earnings.
AI Memory and HBM4 Drive Outlook
Samsung’s profitability has been bolstered by soaring demand for high-bandwidth memory chips used in AI data centers. In February, the company announced it became the first globally to begin mass production of HBM4 chips — the sixth and latest generation of high-bandwidth memory — and initiated deliveries to undisclosed clients. The chips are expected to be critical for Nvidia’s forthcoming Vera Rubin AI architecture.
A Bloomberg report that Apple has held preliminary discussions with Samsung and Intel about manufacturing chips for its devices in the U.S. also fueled investor enthusiasm.
Broader Market Impact
Shares of SK Hynix, Samsung’s main rival in the memory chip market, rose over 9% on Wednesday, contributing to the Kospi’s 5.4% gain as the benchmark crossed 7,000 for the first time. The index had already been setting consecutive all-time highs in recent sessions, closing at 6,936.99 on the previous trading day.
According to Morningstar, robust demand driven by AI infrastructure investment, combined with restricted supply due to capacity limitations, has led to rising semiconductor chip prices — particularly benefiting South Korean chipmakers.
