South Korea’s Samsung Electronics has surpassed a market value of $1 trillion for the first time, driven by the AI chip boom that has propelled Seoul’s Kospi stock index to new highs. The company has become a significant player, along with local competitor SK hynix, in supplying high-performance chips crucial for companies striving to keep pace with the rapidly evolving artificial intelligence sector.
Samsung reported record-breaking profits in the first quarter, coinciding with South Korea’s efforts to establish itself as one of the top three global AI powers, alongside the United States and China. The company saw its stocks surge by nearly 12% in morning trading on Wednesday, propelling its market value above the $1 trillion mark, while SK hynix also saw a rise of around 10%.
The benchmark Kospi index in South Korea climbed over 5%, surpassing 7,000 points for the first time at the market opening. Samsung’s shares have surged by approximately 300% in the past year, fueled by the AI boom driving growth in South Korea.
Samsung now joins Taiwan Semiconductor Manufacturing as the only Asian companies to achieve a market capitalization of $1 trillion. The company reported a staggering 750% year-on-year increase in operating profit, reaching a first-quarter high of 57.2 trillion won ($39.3 billion) last week. This exceptional performance was credited to AI technology advancements and a proactive market strategy, with expectations of robust memory demand continuing into the second quarter as the expansion of AI infrastructure progresses.
