finance
Samsung Electronics Surges Past $1 Trillion Market Cap as Shares Jump Over 15%
Samsung Electronics reached a $1 trillion market capitalization on Wednesday as shares surged more than 15%, driven by strong first-quarter results and AI demand. The company became the second Asian firm to hit this milestone after TSMC. Related stocks like SK Hynix also rose sharply, pushing South Korea's Kospi index above 7,000 for the first time.
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Shares of Samsung Electronics surged more than 15% on Wednesday, propelling the company's market capitalization past $1 trillion. This marked the second time the South Korean chip giant crossed that threshold, having first achieved it in February. , or TSMC.
The stock's performance capped a remarkable year, with Samsung Electronics shares more than quadrupling over the past 12 months. 9 trillion Korean won.
6 trillion won. The earnings surge reflected booming demand for chips used in artificial intelligence, as noted in reports from CNBC and the Japan Times. Sales of high-bandwidth memory, or HBM chips, have boosted profitability, though Samsung faces competition from rivals.
In February, Samsung became the world's first firm to begin mass production of HBM4 chips, the sixth and latest generation of high-bandwidth memory technology. The company also started deliveries of these HBM4 chips to undisclosed customers that same month.
Related developments fueled broader market gains. SK Hynix shares jumped more than 10% on Wednesday, contributing to the benchmark Kospi index rising more than 5% and topping 7,000 for the first time. SK Hynix and TSMC both reached record highs earlier this month.
U.S. This potential diversification comes amid tightening supply conditions in the memory chip market. Morningstar technology equity analyst Yu Jing Jie highlighted a tremendous shortage in DRAM and NAND memory chips due to high AI demand, noting that new semiconductor capacity typically takes two to three years to come online.
