Samsung Electronics Co. shares surged to an all-time high on Friday, closing at 94,400 won. The significant stock price movement is driven by growing investor confidence in the company's prospects within the artificial intelligence sector and a positive outlook for its traditional memory chip business.
The technology giant's stock increased by 6.1% in Seoul after the market reopened following a weeklong holiday. This rally reflects a broader market belief that Samsung is poised to become a key supplier of advanced chips for AI applications, while its core memory products are expected to enter a period of high demand and pricing.
Key Takeaways
- Samsung Electronics stock closed at a record 94,400 won ($66), a single-day increase of 6.1%.
- The primary drivers are investor optimism about Samsung's role in the AI chip market, particularly high-bandwidth memory (HBM).
- Analysts anticipate a "supercycle" for conventional DRAM and NAND memory chips, citing potential supply shortages and rising prices.
- Unlike a 2021 peak driven by retail investors, the current rally is largely supported by foreign investment.
- The stock has gained 77% year-to-date, boosting Samsung's market capitalization to $393.5 billion.
AI Chip Potential Drives Investor Confidence
A significant portion of the recent investor enthusiasm is tied to Samsung's potential in the high-bandwidth memory (HBM) market. HBM is a critical component for training and running advanced artificial intelligence models, and demand has soared with the growth of generative AI.
Investors are betting that Samsung can successfully compete with its rival, SK Hynix Inc., to supply these specialized memory chips to major AI hardware companies like Nvidia Corp. For much of the year, SK Hynix has been the dominant supplier, but sentiment is shifting as Samsung makes progress.
What is High-Bandwidth Memory (HBM)?
HBM is a type of high-performance RAM that uses stacked memory chips to achieve a much wider data bus and higher bandwidth than traditional DRAM. This architecture is essential for AI processors that need to access massive datasets quickly, making HBM a bottleneck and a highly valuable component in the AI supply chain.
Market speculation has been fueled by reports that Samsung and Nvidia are nearing a significant supply agreement. This potential partnership is seen as a major catalyst for Samsung's future growth in the lucrative AI sector.
"It is said that Nvidia and Samsung are in the final stages of negotiating supply volumes, prices, and schedules," commented Shawn Oh, an equities trader at NH Investment & Securities Co. He added that "Samsung’s discount is resolving when it comes to supplying Nvidia with high-bandwidth memory."
Further boosting confidence is the news of a potential supply deal involving both Samsung and SK Hynix with the AI research company OpenAI, indicating broad demand for advanced Korean memory technology.
Conventional Memory Market Poised for a Supercycle
While the AI narrative captures headlines, Samsung's traditional memory business is also showing strong signs of recovery. The markets for DRAM and NAND flash memory, where Samsung has long been a dominant player, are expected to benefit from favorable market dynamics.
Analysts project an upcoming "supercycle," a period of sustained high demand and rising prices, driven by anticipated supply shortages. This cycle is expected to significantly boost Samsung's revenue and profitability in its core business segment.
Analyst Price Target Increase
Morgan Stanley analysts recently raised their price target for Samsung's stock by 14% to 111,000 won. Their forecast points to a sharp increase in memory chip pricing in the fourth quarter and a robust demand cycle that could extend well into 2026.
This positive outlook for legacy chips provides a stable foundation for the company, complementing the more speculative excitement surrounding its AI ventures. The combination of a recovering core market and a high-growth new market has created a powerful narrative for investors.
Market Performance and a Shift in Investor Base
Samsung's stock performance in 2025 has been remarkable. With a 77% gain year-to-date, the company's market capitalization has swelled to approximately $393.5 billion. September marked the stock's best monthly performance since 2020.
A key difference between this rally and the company's previous peak in 2021 is the source of investment. The 2021 surge was largely fueled by a frenzy of local retail investors during the pandemic. In contrast, the current record high has been predominantly driven by foreign institutional investors, suggesting a different kind of confidence in the company's long-term strategy.
The strong performance of Samsung and SK Hynix, which has seen its shares rise 146% this year, has had a major impact on the broader South Korean market. The benchmark Kospi index has risen by 50% year-to-date, making it one of the world's best-performing stock markets in 2025.
Analysts See a Turning Point for Samsung in AI
After being perceived as lagging in the initial global AI stock rally, Samsung is now seen as catching up. The market is re-evaluating the company's position and potential, leading to a rapid repricing of its shares.
"Samsung’s finally having its AI moment," said Haris Khurshid, chief investment officer at Karobaar Capital LP. "What’s interesting is this rally isn’t just about chips, it’s about belief because investors have decided Samsung’s not missing this wave like it did early on, and now seems like everyone’s racing to reprice the gap."
This sentiment reflects a belief that Samsung's vast manufacturing scale, research and development capabilities, and existing market relationships will allow it to become a formidable force in the AI hardware supply chain. The combination of its established memory leadership and its emerging AI opportunities has created a compelling case for investors, culminating in the stock's recent record-breaking performance.