Shares of Samsung Electronics (SSNLF) have surged to a record high in South Korea, surpassing a $1 trillion valuation milestone. The rally comes as U.S. chip stocks continue to climb, lifting sentiment across the global semiconductor sector amid solid demand for memory and advanced chips. Samsung has now become only the second East Asian company to reach this level, alongside TSMC (TSM). On Wednesday, the stock jumped more than 15% in local trading, helping drive the KOSPI benchmark above the 7,000 level.
Claim 55% Off TipRanks
New trading tool for NVDA bearsFor context, Samsung is a global technology leader known for its smartphones, semiconductors, and consumer electronics. It is one of the world’s largest memory chip makers, playing a key role in powering AI, data centers, and advanced computing systems.
Chip Stocks Surge on AI Boom
On the other side of the world, Micron (MU) surged 11% on strong AI-driven memory demand, while Advanced Micro Devices (AMD) jumped over 16% in after-hours trading following a solid Q1 earnings beat. Meanwhile, Intel (INTC) gained nearly 13% on reports of a potential deal with Apple (AAPL).
U.S. chip stocks are playing a central role in driving the next phase of the AI wave. Their strong earnings, rising demand, and heavy spending are showing that AI growth is real and likely to last for years. As these U.S. leaders continue to scale, the momentum is spilling over globally—benefiting companies like Samsung tied to memory and advanced chip supply chains.
Meanwhile, SK Hynix (HXSCL), Samsung’s Korean rival, also jumped more than 10% to a record high in today’s trading.
Samsung Rides AI Momentum
Samsung and SK Hynix are key suppliers of high-bandwidth memory (HBM) chips, which are critical for AI systems used by companies like Nvidia (NVDA) and other large cloud providers. With demand surging, customers are increasingly securing HBM supply years in advance, while prices for traditional DRAM and NAND memory have also risen due to tight supply.
Notably, this strong demand environment has significantly boosted Samsung’s profitability. The company reported Q1 operating profit of ₩57.2 trillion ($39 billion), more than eight times higher than a year ago.
Despite the sharp rally, some analysts believe the stock still has room to run. Analyst Chaiwon Lee at Life Asset Management noted that Samsung trades at a 12-month forward P/E of about six times, compared with roughly 25 times for TSMC and around 10 times for MU. He added that while this valuation suggests potential upside, investors remain cautious about risks such as rising competition from China, increased capital spending, and the possibility of a slowdown in AI demand.
Wall Street’s Take on Chip Stocks
Using TipRanks Stock Comparison Tool, we reviewed major chip stocks to see how analysts are positioning for the next AI rally. Wall Street remains broadly bullish on chip stocks, driven by strong demand for AI infrastructure, data centers, and high-performance computing.
However, upside appears more limited for MU, AMD, and INTC stocks following their recent surge in share prices. In contrast, NVDA still offers significant upside potential of nearly 40%, according to analyst estimates.
