AI boom pushes Samsung to $1T

Source: TechCrunch

Samsung hits $1 trillion valuation

Samsung reached a $1 trillion valuation on Wednesday as its shares surged more than 10%, driven by the ongoing artificial‑intelligence frenzy fueling demand for chips. The milestone makes Samsung only the second Asian company to cross the trillion‑dollar threshold, after TSMC.

Earnings boost from AI‑driven chip demand

The news follows a blockbuster earnings report last week, in which Samsung posted profits eight times higher than the same period a year ago. Every company building AI right now needs chips, and Samsung makes the memory chips that power those AI systems. Demand is surging while supply struggles to keep up, pushing prices higher and boosting Samsung’s profits.

Potential Apple partnership

Reports emerged that Apple has been in talks with both Samsung and Intel to manufacture chips for Apple devices on U.S. soil. Apple has long relied almost exclusively on TSMC in Taiwan for its chip production. If Samsung lands the deal, it would mark a significant shift in the global semiconductor supply chain.

High‑bandwidth memory (HBM) at the core of profit growth

At the heart of Samsung’s profit boom is high‑bandwidth memory (HBM), a type of chip critical to running AI systems, which has dramatically improved the company’s margins. Rival SK Hynix, another South Korean semiconductor giant, is aggressively vying for the same market, keeping pressure on Samsung to maintain its edge.

Industry‑wide chip shortage

The AI boom is driving a chip shortage across the semiconductor industry, as the world’s three largest memory‑chip makers—Samsung, SK Hynix, and Micron—struggle to meet runaway demand from AI data centers. All three companies have pulled investment away from their consumer‑chip businesses to ramp up production of HBM, which carries substantially higher margins and has become essential to powering large‑scale AI infrastructure.

Headwinds and labor concerns

Despite the historic surge, Samsung still faces challenges. Workers are threatening an 18‑day strike later this month, demanding a larger share of the AI‑driven profits. Meanwhile, the company’s phone and TV divisions, which also need to buy the same memory chips to build their products, are paying a steep price for those chips powering Samsung’s record profits.