Samsung Electronics achieved a major milestone this week, surpassing a market value of $1 trillion for the first time. This significant growth comes as the company capitalizes on the booming demand for AI chips.
The surge in Samsung's stock price, which rose by nearly 12% during morning trading, reflects the company's pivotal role in supplying high-performance chips essential for advancing artificial intelligence technologies.
Samsung's recent financial report showcased its record first-quarter profit, which soared to 57.2 trillion won ($39.3 billion), marking a staggering 750% increase compared to the same period last year.
This growth aligns with South Korea's aspirations to emerge as a top player in the global AI sector, competing with industry giants like the United States and China.
The Kospi stock index also experienced a significant boost, climbing over five percent to exceed 7,000 points for the first time, driven largely by Samsung and its rival, SK hynix, which saw its stock rise by around 10%.
Samsung's stock has risen approximately 300% in the last year, underscoring the impact of the AI boom on South Korea's economic growth.
With this achievement, Samsung becomes only the second Asian company to reach a market capitalization of $1 trillion, following Taiwan Semiconductor Manufacturing.
The firm anticipates that strong memory demand will persist into the second quarter as the expansion of AI infrastructure continues.