The surge places the South Korean firm among the world’s most valuable technology companies and only the second in Asia to reach that level after Taiwan Semiconductor Manufacturing Company.

In early trading in Seoul, Samsung’s value climbed to about 1,500 trillion won, or roughly $1.03 trillion. Shares rose by around 12% to 14%, extending a rally that has built steadily over the past year.

Trading volumes picked up as investors reacted to the latest growth in artificial intelligence-linked stocks in the United States overnight.

The South Korean market also moved strongly. The Kospi index jumped more than 5%, pushing above the 7,000 level for the first time. Semiconductor peers SK Hynix and global chip giant TSMC also held near record highs, as the global appetite for AI computing power continues to lift the sector.

Samsung, alongside SK Hynix and TSMC, supplies much of the memory and processing capacity behind data centres and advanced computing systems.

That position has helped shift global investor attention towards Asia’s chipmakers, particularly as demand for high-performance memory continues to tighten.

“The trillion-dollar threshold carries material weight beyond the symbolism,” said Dave Mazza, chief executive officer at Roundhill Investments in New York. “More broadly, it reflects a market judgment that memory’s role in the AI infrastructure stack is structural, not cyclical.”

Recent financial performance has strengthened that view, as Samsung’s semiconductor division recorded a sharp growth in profit in the March quarter, rising about 48 times compared with the previous year.

The company attributed the performance to strong orders from AI data centres and higher contract prices across memory products.

Market analysts expect the growth to continue, but supply in the memory chip industry is still tight, and pricing trends have moved upward.

Sam Konrad, investment manager at Jupiter Asset Management, said: “If investors do some work on Samsung Electronics we think they will conclude that the investment opportunity is attractive even if they have missed its performance up until now,” said Sam Konrad, investment manager at Jupiter Asset Management.

“The memory market is currently undersupplied, and Samsung said that 2027 will see tighter supply and demand than 2026, so prices for NAND and DRAM are likely to continue rising.”

There is also growing interest from outside the semiconductor sector. Reports show that Apple has held discussions about using Samsung to manufacture key processors in the United States, potentially reducing reliance on its long-term partner TSMC.

Foreign investors have played a noticeable role in the latest rally, boosting Samsung valuation. Market data showed net inflows of about 3.1 trillion won into Kospi equities in a single day.

The South Korean won also strengthened, gaining more than 1% against the US dollar to become one of the strongest Asian currencies in the session.

Global views have also supported the move. On Wall Street, both the S&P 500 and the Nasdaq closed at record highs, with semiconductor and AI-related stocks leading gains.

Despite the strong performance, Samsung’s mobile and display divisions are facing challenges from high material costs and competition. At the same time, labour tensions have emerged, with workers reportedly threatening an 18-day general strike over profit sharing linked to the chip boom.

Even so, market expectations are upbeat. Analysts estimate Samsung’s share price could rise further over the next year, with projections of about 22% upside. The stock currently trades at roughly six times forward earnings, down from over 14 times last year.

Samsung’s rise, together with SK Hynix, has helped make South Korea one of the most closely watched equity markets globally. Together, the two firms account for a large share of the Kospi index and enhance its direction.

Mark Davids, APAC head of emerging markets and Asia Pacific equities at JPMorgan Asset Management, said: “Samsung’s profits reflect a very unusual period where these companies can achieve outsized profits,” he said.

Reports say the company could post operating profit of about 40.5 trillion won ($26.8 billion) for January to March.

That would be six times higher than the same period last year and close to its full-year earnings for 2025. Revenue is also seen going up by about 50%.

Some forecasts go even higher. Analysts at Citigroup expect profit to reach 51 trillion won, above the market estimate.

The profits come as memory chip prices increase. Data from TrendForce shows DRAM contract prices doubled in the first quarter compared with the previous quarter. They are expected to grow by another 58% to 63% in the second quarter.

Demand is being driven by heavy spending on artificial intelligence infrastructure. Large technology firms are investing heavily in data centres, increasing the need for high-performance memory chips. One analyst described the current market as unusually strong.

“You couldn’t ask for things to be better,” said Ko Yeongmin, analyst at Daol Investment & Securities.

Even so, investors are monitoring developments outside the company. The conflict in the Middle East has pushed up energy prices and could affect supplies of key materials used in chip production.

There are concerns that higher prices may force technology companies to slow spending on AI projects.

At the same time, there are early signs that spot prices for DRAM chips have eased in recent weeks. Higher prices for smartphones and computers are beginning to affect consumer demand.

New technology is also adding pressure. Google recently introduced a memory-saving system called TurboQuant, which could reduce the amount of memory needed for some AI workloads.

These issues have weighed on the stock as shares in Samsung Electronics have fallen about 14% since late February, when the conflict began. However, the stock is still up 50% since the start of the year.

Some experts believe the recent slowdown in prices will not last.

“We have seen a cooling (in memory chip spot prices) over the last 3-4 weeks, yes. We do believe it’s temporary,” said Tobey Gonnerman, president of Fusion Worldwide. “The demand and backlog remain strong.”

Samsung is still the world’s largest memory chipmaker, with about 40% of the DRAM market and around 35% of NAND flash. Its semiconductor division accounts for more than 70% of total profit, making it the company’s main source of earnings.

The company is also strengthening its focus on AI. It recently agreed to work with Nvidia to produce AI inference processors.

Outside chips, performance is predicted to be weaker. Analysts say Samsung’s contract chip manufacturing business is likely to remain loss-making as it competes with TSMC.

Meanwhile, profits from smartphones and display panels could fall by about half due to high component expenses and stronger competition.

There are also labour concerns at home. Workers in South Korea have called for changes to pay and bonuses and have warned of possible strike action in May.

U.S. shares rose 7% on Thursday, with a further 2.6% gain after hours, while Frankfurt-listed shares climbed 3.6% on Friday. Investors are betting that government backing could provide much-needed stability for the struggling chipmaker.

The potential investment was first reported by Bloomberg, noting discussions that followed an 11 August meeting between President Donald Trump and Intel’s Chief Executive Officer, Lip-Bu Tan. 

The talks reportedly focused on how Washington could accelerate domestic semiconductor manufacturing, with the delayed Ohio mega-fab project expected to be a central part of the plan.

The development comes amid one of Intel’s most challenging periods in decades. The company posted a $2.9 billion net loss in the second quarter of 2025, driven by $1.9 billion in severance costs and $800 million in asset impairments. 

A restructuring plan has seen 25,000 jobs cut and major chip fabrication projects in Germany, Poland, and Ohio scrapped or delayed.

Trump’s involvement with Intel has been far from smooth. Days before the reported stake talks, he called for Tan to resign over what he described as “highly conflicted” ties to Chinese firms. 

His comments followed a letter from Senator Tom Cotton, alleging Tan’s investments in over 100 Chinese technology companies, including at least eight linked to the People’s Liberation Army.

Tan’s past leadership of Cadence Design Systems has also resurfaced in political debate. In July 2025, the company admitted to illegally exporting chip design software to a Chinese military university, paying $140 million in fines.

Despite political issues, Intel aims to continue cooperating with the White House. “Intel is deeply committed to supporting President Trump’s efforts to strengthen U.S. technology and manufacturing leadership,” a company spokesperson said. 

“We look forward to continuing our work with the Trump Administration to advance these shared priorities, but we are not going to comment on rumours or speculation.”

Tan has also made it apparent that there will be no return to unchecked spending. “There are no more blank cheques. Every investment must make economic sense,” he said.

Intel has already secured nearly $8 billion in federal subsidies through the CHIPS and Science Act, placing it among the largest beneficiaries of U.S. semiconductor funding.

Analysts suggest a direct government stake could help stabilise Intel’s finances and restore competitiveness against rivals Nvidia, AMD, and TSMC.

Disclosed at the White House with former President Donald Trump, one of the goals is to reduce dependence on foreign-made semiconductors. The investment will fund the construction of five additional semiconductor facilities, including three fabrication plants, two advanced packaging centres, and a research and development hub. 

TSMC has not specified a timeline for these projects but noted that the expansion would generate 40,000 construction jobs over the next four years.

Over-reliance on Taiwan for semiconductor supply is increasing, given China’s current focus on asserting its sovereignty claims over the island.  The U.S. government has been encouraging chipmakers to establish local production facilities to mitigate supply chain risks and strengthen national security.

Trump, speaking at the announcement, commended the decision as a big win for domestic manufacturing. “We must be able to build the chips and semiconductors that we need right here. It’s a matter of national security for us,” he said.

TSMC’s growing presence in the U.S. aligns with efforts under the CHIPS and Science Act, which provides $52.7 billion in subsidies to boost semiconductor production and research. The company has already secured $6.6 billion in government support for its Arizona operations and could benefit from additional tax incentives under the 2022 legislation.

Despite these advantages, TSMC has faced challenges in its U.S. expansion. Its first Arizona plant encountered delays and higher production costs compared to its facilities in Taiwan. 

This has led analysts to question the long-term feasibility of large-scale chip manufacturing in the U.S. “Higher costs are definitely a concern for TSMC,” said Andrew Tsai, chairman of Taiwan’s Capital Investment Management Corp.

TSMC’s role in the global chip supply chain is important, with clients including Nvidia, Qualcomm, and Advanced Micro Devices (AMD). The new facilities are expected to bolster these partnerships and enhance U.S. technological capabilities.

There are also indications that TSMC could play a role in supporting Intel’s struggling chip manufacturing division. Sources suggest that Trump administration officials have discussed the possibility of TSMC taking a majority stake in a joint venture with Intel, although neither company has confirmed these reports.

While the U.S. is keen to strengthen its semiconductor industry, Taiwan’s government will review the investment in line with regulations governing large overseas projects by domestic firms. “This ensures that while TSMC expands its investment in the U.S., the most advanced processes will remain in Taiwan,” said Karen Kuo, a spokesperson for the Presidential Office.

The company has yet to disclose the specific chip technology it plans to deploy at the new sites. However, it previously agreed to produce 2-nanometer chips at its second Arizona plant, set to begin operations in 2028. It also committed to using its advanced “A16” manufacturing technology in the state.

Investments in U.S. technology and manufacturing are shooting up. Apple recently announced plans to spend $500 billion over the next four years, while investors such as Emirati billionaire Hussain Sajwani and SoftBank have also pledged commitments to American industries.

With a budget of $500 billion over the next four years, the project aims to enhance computing capacity, create hundreds of thousands of jobs, and strengthen national security. 

An initial $100 billion will be deployed immediately, starting with a flagship data centre project in Texas.

SoftBank and OpenAI are the lead partners, with SoftBank handling financial responsibilities and OpenAI overseeing operations. 

Masayoshi Son, SoftBank’s CEO, has been named chairman of Stargate, with major stakeholders including MGX, NVIDIA, Arm, and Microsoft. Speaking about the scale of the project, Oracle co-founder Larry Ellison said, “Each building is a half a million square feet. There are 10 buildings currently being built.”

The Stargate initiative has already begun construction in Texas, marking the launch of its first data centre, which will eventually expand to other states. These facilities will include cutting-edge AI computing systems developed collaboratively by OpenAI, NVIDIA, and Oracle. 

The partners have also announced plans to scale up to 20 data centre installations by 2029, evaluating additional sites across the country to accommodate future expansion. Reports reveal that these data centres will include innovative AI chips designed by OpenAI, with semiconductor giants Broadcom and TSMC involved in chip production.

A Network of Collaborations

The project builds on longstanding partnerships. OpenAI and NVIDIA have collaborated since 2016, while OpenAI’s relationship with Microsoft has grown through its extensive use of Microsoft Azure for AI model training. Oracle’s existing agreements to supply AI computing resources also strengthen its role in the venture.

SoftBank’s deep involvement in OpenAI predates this project as the company previously committed $500 million to OpenAI’s funding round and an additional $1.5 billion to facilitate a tender offer for its employees. Again, Middle East AI fund MGX, which has invested in OpenAI, will also be leveraged in Stargate.

While the Stargate Project has good prospects, issues about environmental and social impacts haven’t been ignored. Data centres, known for their heavy water usage and high energy consumption, could stress resources in regions with limited infrastructure. Issues about the long-term job creation promised by similar large-scale projects have also been raised.

Nonetheless, experts like Goldman Sachs projects that AI-related data centre demand will account for nearly 19% of total power consumption by 2028, noting the sector’s quick expansion. A McKinsey report forecasts that spending on data centre infrastructure could exceed $250 billion within the next five years.

OpenAI CEO Sam Altman has called for fewer regulatory limitations to accelerate the development of critical infrastructure projects in the United States. Highlighting challenges in an interview, Altman said, “The thing I really deeply agree with [President Trump] on is, it is wild how difficult it has become to build things in the United States… Power plants, data centres, any of that kind of stuff. I understand how bureaucratic cruft builds up, but it’s not helpful to the country in general.”

Nonetheless, the Stargate Project has garnered support from stakeholders and government officials. Hence, with a focus on re-industrialisation and innovation, the initiative is expected to bolster AI infrastructure and boost the United States’ innovation in global AI leverage.