Samsung Electronics’ market valuation surpassed $1 trillion following a historic stock rally. The company's share price has more than quadrupled over the past year. An 11% share price surge made Samsung the second Asian company after TSMC to reach this milestone.
Skyrocketing demand for high-bandwidth memory (HBM) chips used in artificial intelligence systems drove the valuation. The global memory market is currently in an upcycle, leading to record earnings for the chip division. Reports of potential talks to manufacture main processors for Apple further fueled investor optimism.
Despite the chip success, Samsung faces rising component costs in its mobile and display businesses. The company is also currently navigating a wage dispute with its labor union.