AI boom pushes Samsung to $1T
AI boom pushes Samsung to $1T
Samsung reached a $1 trillion valuation on Wednesday as shares of the South Korean tech giant 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.
The news comes on the heels of 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.
There’s another reason shares surged on Wednesday. Reports came out yesterday 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.
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. But the competition is intense. Rival SK Hynix, a South Korean semiconductor giant, is aggressively vying for the same market, keeping the pressure on Samsung to maintain its edge.
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.
Despite Wednesday’s historic surge, Samsung still faces headwinds. Workers are threatening an 18-day strike later this month over a larger share of the AI windfall. Meanwhile, the company’s phone and TV divisions, which also need to buy those same memory chips to build their products, are paying a steep price for the same chips powering Samsung’s record profits.
When you purchase through links in our articles, we may earn a small commission. This doesn’t affect our editorial independence.
Kate Park is a reporter at TechCrunch, with a focus on technology, startups and venture capital in Asia. She previously was a financial journalist at Mergermarket covering M&A, private equity and venture capital.
Sponsorluk
Sponsorluk
Sponsorluk
Sponsorluk
Reklam
Kategoriler
Read More
Airbnb is introducing a private car pick-up service 2:00 AM PDT · March 31, 2026 Airbnb announced Tuesday it is expanding its services feature with a new category for car pick-ups across 125 cities around the world. The company is partnering with transportation company Welcome Pickups to let users book a private car service in cities including Paris, Bali,...
Amazon is currently holding its Big Spring Sale, offering fantastic discounts on open earbuds from popular brands like Shokz, Sony, and Soundcore. If you're in the market for comfortable earbuds that allow you to hear your surroundings while enjoying your favorite music or podcasts, now is a great time to shop. These brands are known for their quality and innovative designs, making it easier...
The Best Smart Baby Monitors of 2026, as Tested by MomsBaby monitors help parents keep an eye on babies and toddlers while they sleep and play. These devices have become advanced over the years, with improved video and audio quality, smart safety alerts and more. At CNET, we have parents with kids of different ages, so we're always looking for new forms of tech that can make parenting easier....
World Economic Forum boss Borge Brende quits after review of Jeffrey Epstein linksReutersThe president and CEO of the World Economic Forum (WEF), Borge Brende, has resigned after a review into his links to the late sex offender Jeffrey Epstein. The forum ordered an independent review into Brende over his ties to the disgraced financier following the release of Epstein files by the US Department...
Stanford study outlines dangers of asking AI chatbots for personal advice While there’s been plenty of debate about the tendency of AI chatbots to flatter users and confirm their existing beliefs — also known as AI sycophancy — a new study by Stanford computer scientists attempts to measure how harmful that tendency might be. The study, titled “Sycophantic AI decreases prosocial intentions and...
