AI boom pushes Samsung to $1T
Image: Primary Samsung reached a $1 trillion valuation on Wednesday as its shares surged more than 10 percent. The increase was driven by artificial intelligence demand for chips. Samsung is the second Asian company to reach the threshold after TSMC.
The company reported profits eight times higher than the same period a year ago in a recent earnings release. Samsung produces memory chips that power AI systems. Surging demand and limited supply have raised prices and lifted profits.
Reports indicated that Apple has discussed chip manufacturing with Samsung and Intel for devices made in the United States. Apple has primarily used TSMC in Taiwan for production. High-bandwidth memory chips have boosted Samsung margins but face competition from SK Hynix.
Samsung, SK Hynix, and Micron are struggling to meet demand from AI data centers. They have shifted investment toward high-bandwidth memory production. Samsung workers are threatening an 18-day strike this month over profit shares. The company's phone and TV divisions face higher costs for the same chips.
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