Samsung Electronics market value tops US$1 trillion on AI chip boom
Samsung Electronics has emerged as a key player in the supply of high-performing chips.
· CNA · JoinRead a summary of this article on FAST.
Get bite-sized news via a new
cards interface. Give it a try.
Click here to return to FAST Tap here to return to FAST
FAST
SEOUL: The market value of South Korea's Samsung Electronics smashed past US$1 trillion for the first time on Wednesday (May 6) as the firm rides an artificial intelligence chip boom that has sent Seoul's Kospi stock index to record highs.
The company has emerged as a key player - alongside domestic rival SK Hynix - in the supply of high-performing chips that are wanted by firms racing to keep up with the fast-evolving artificial intelligence industry.
Samsung logged record first-quarter profit last week, with the announcement coming as the South Korean government pushes to break into the world's top three AI powers alongside the United States and China.
The company's stocks spiked nearly 12 per cent in morning trading on Wednesday, pushing its market value past the US$1 trillion milestone.
CNA Games
Guess Word
Crack the word, one row at a time
Buzzword
Create words using the given letters
Mini Sudoku
Tiny puzzle, mighty brain teaser
Mini Crossword
Small grid, big challenge
Word Search
Spot as many words as you can
Show More
Show Less
SK Hynix was up around 10 per cent.
That came as the country's benchmark Kospi index soared more than 5 per cent, blowing through 7,000 points for the first time at the opening bell.
Samsung's shares have risen around 300 per cent over the past year as the AI boom boosts South Korean growth.
The company is only the second Asian company after Taiwan Semiconductor Manufacturing to hit a market capitalisation of US$1 trillion, Bloomberg News reported.
The firm said last week that operating profit surged 750 per cent on-year to a record first-quarter high of 57.2 trillion won (US$39.3 billion).
It attributed the strong performance to "AI technology innovations and proactive market response", adding that it expected "strong memory demand to continue" through the second quarter as the buildout of AI infrastructure continues apace.
Newsletter
Week in Review
Subscribe to our Chief Editor’s Week in Review
Our chief editor shares analysis and picks of the week's biggest news every Saturday.
Newsletter
Week in Review
Subscribe to our Chief Editor’s Week in Review
Our chief editor shares analysis and picks of the week's biggest news every Saturday.
Newsletter
Morning Brief
Subscribe to CNA’s Morning Brief
An automated curation of our top stories to start your day.
Sign up for our newsletters
Get our pick of top stories and thought-provoking articles in your inbox
Get the CNA app
Stay updated with notifications for breaking news and our best stories
Get WhatsApp alerts
Join our channel for the top reads for the day on your preferred chat app