The technology giant is breaking records. Shares skyrocketed

Stock market value Samsung Electronics exceeded the trillion dollar level. This is a historic moment for the company, whose shares increased by over 15%. The strong growth is the result of very good financial results and the growing demand for technologies related to artificial intelligence.

Samsung became the second Asian company to achieve such a valuation. He had previously reached a similar level TSMC. According to FactSet data, the trillion-dollar barrier was crossed already at the end of February, but it was the last trading session that brought the biggest jump.

Record results

The company’s financial results had the greatest impact on the increase in prices. In the first quarter, operating profit increased more than eightfold and revenues reached record levels.

Importantly, the result achieved in the first three months of the year was higher than the profit for the entire previous year. This clearly improved investor sentiment after earlier declines on Asian markets.R

Conversations and the chip market

Information about the talks provided an additional impulse for the market Apple with Samsung and Intel. They concern potential chip production in the United States.

Such a move would help Apple become independent from current suppliers, and for Samsung it would mean new business opportunities in the strategic semiconductor segment.S

Artificial intelligence drives the market

The artificial intelligence boom is affecting the entire technology sector. Shares of a competing company SK Hynix also increased by several percent.

The main index of the Seoul Stock Exchange, Kospi, gained over 5%. and exceeded the level of 7,000 points for the first time. The increases are directly related to the growing demand for advanced components.

Memory and deficiencies

Samsung’s key source of revenue is high-bandwidth memory (HBM). The company has started mass production of the sixth generation of these systems, which are important for the development of artificial intelligence, including: in solutions created by Nvidia.

Analysts point to large shortages of DRAM and NAND memory. They result from the growing needs related to AI, which requires high bandwidth and large amounts of data.

Market and prospects

Experts emphasize that the construction of new semiconductor factories takes up to several years, which limits supply in the short term. This helps maintain high prices and stable profits for producers.

Despite strong competition, investors focus on profitability. Recently, traditional DRAM memories have delivered higher margins than modern HBM chips, which further strengthens the company’s financial results.