Samsung Electronics hits $1tn value on AI euphoria

{"text":[[{"start":8.25,"text":"Samsung Electronics has hit a $1tn market value on the back of booming demand for AI-related stocks, becoming only the second east Asian company in the elite club alongside Taiwan Semiconductor Manufacturing Co."}],[{"start":22.95,"text":"The South Korean memory chip giant’s stock surged as much as 12 per cent on Wednesday to a record, helping to push the Kospi benchmark through the 7,000 level for the first time after it jumped almost 6 per cent. "}],[{"start":38.05,"text":"Shares in rival Korean chipmaker SK Hynix also leapt more than 10 per cent to a record high."}],[{"start":43.9,"text":"The rises followed a surge in chip stocks on Wall Street overnight, with AMD gaining about 12 per cent in after-hours trading after forecasting better than expected revenue for the second quarter."}],[{"start":55.099999999999994,"text":"Samsung Electronics accounts for about a quarter of the Kospi. The stock’s value has almost quintupled in the past 12 months."}],[{"start":62.49999999999999,"text":"The Kospi has risen more than 70 per cent this year after gaining 76 per cent in 2025 — its biggest increase since 1999 — boosted by market reforms introduced by the government."}],[{"start":null,"text":"

"}],[{"start":75.64999999999999,"text":"Wednesday’s milestone capped an extraordinary rise for the electronics company, which now sits at the centre of the AI boom."}],[{"start":83.64999999999999,"text":"Founded in 1969 as part of Lee Byung-chul’s Samsung conglomerate, it was long known for its cheap home appliances and televisions, and more recently the popular Galaxy smartphone range."}],[{"start":95.85,"text":"But the relentless growth in capex spending by Big Tech has transformed memory chips from a cyclical commodity business into one of the most strategically important sectors in the world economy."}],[{"start":107.14999999999999,"text":"Samsung and Korean rival SK Hynix make the high-bandwidth memory (HBM) chips that Nvidia and other big tech “hyperscalers” depend on. "}],[{"start":116.74999999999999,"text":"Buyers are locking in years of HBM supply in advance, and prices for less advanced DRam and Nand memory chips have also been driven up by high demand."}],[{"start":126.34999999999998,"text":"That demand has turned Samsung Electronics into one of the world’s most profitable companies. In the first quarter alone, it reported operating profit of Won57.2tn ($39bn), more than eight times the figure for the same period last year.  "}],[{"start":142.89999999999998,"text":"Analysts said shares could still have some room to run. Chaiwon Lee of Life Asset Management said Samsung’s 12-month forward price-to-earnings ratio stood at six times, compared with 25 for TSMC and 10 for Micron."}],[{"start":156.79999999999998,"text":"“This shows its shares are still undervalued and have strong upside potential, although long-term risks exist such as China’s growing market share, increasing capex and the possibility of AI spending slowing down.” "}],[{"start":170.14999999999998,"text":"The semiconductor division’s success has brought the threat of industrial action. If a deal is not made, Samsung unions say they will go on strike from May 18. "}],[{"start":180.24999999999997,"text":"Samsung staff who make smartphones and other devices are not likely to share in potential payouts, triggering tensions between divisions."}],[{"start":187.69999999999996,"text":"SK Hynix recently announced a decision to pay staff bonuses of 10 per cent of operating profit."}],[{"start":194.39999999999995,"text":"PetroChina, the listed division of state oil group China National Petroleum Corp, reached a $1tn valuation in 2011 but has since fallen back."}],[{"start":203.54999999999995,"text":"Additional reporting by Song Jung-a in Seoul. Data visualisation by Haohsiang Ko in Hong Kong"}],[{"start":217.64999999999995,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1778047215_5109.mp3"}