Shares of Samsung reached a new all-time high on Friday, climbing 6.1% to 94,400 won ($66). With a market value of approximately 620 trillion KRW or $433.7 billion USD, Samsung is now the largest company in South Korea. The stock has surged by 77% this year, with expectations that Samsung will be able to compete with SK Hynix in supplying high-bandwidth memory to companies such as Nvidia for AI-related components.
Positioned to Benefit from a Memory Chip Supercycle
NH Investment & Securities Co. equity trader Shawn Oh commented, "Samsung's competitive advantage is becoming more evident through its potential supply of high-bandwidth memory to Nvidia and the ongoing investments in AI. Negotiations between Nvidia and Samsung are reportedly in the final stages regarding supply volume, pricing, and timing." Samsung is poised to capitalize on an anticipated Supercycle in the memory chip market for DRAM and NAND chips, with shortages expected to drive prices higher.
Shares of Samsung hit a record high. | Image credit-Bloomberg
Investment firm Morgan Stanley has raised its target price for Samsung by 14% to 111,000 won ($77.65 USD). The stock would need to climb 17.7% from its current price to reach Morgan Stanley's revised target. Analysts at the firm have adjusted their target in anticipation of a fourth-quarter increase in memory chip prices and sustained demand for these chips through 2026, suggesting significant upside potential for Samsung's stock.
Will Samsung's Shares Continue to Soar?
Yes. With AI and memory chips driving growth, the outlook is positive.
61.54%
No. Market conditions could lead to a decline in the stock price.
South Korea has been among the best-performing regions in terms of stock market performance this year. Samsung's shares had their strongest September since 2020 last month. Meanwhile, shares of Samsung's competitor SK Hynix have surged by 146% in 2025, and the benchmark Kospi index has seen a 50% increase.
Analyst Predicts Samsung's AI Revolution
Haris Khurshid, chief investment officer at Karobaar Capital LP in Chicago, remarked, "Samsung appears to be at the forefront of the AI revolution. What's intriguing is that this rally isn't solely tied to chip performance; it reflects investor confidence that Samsung is seizing the AI opportunity and keeping pace with industry leaders."
Other analysts have attributed Friday's market surge to reports of Samsung renewing partnerships with Qualcomm and Intel. Speculation suggests that Samsung Foundry has improved the yield on its 2nm process node, prompting Qualcomm to consider having a special "for Galaxy" version of the Snapdragon 8 Elite Gen 5 application processor produced by Samsung Foundry.
AI continues to dominate the tech landscape, with Nvidia emerging as the most valuable publicly traded company in the U.S. with a valuation of $4.5 trillion. This shift underscores the significance of AI technology and its potential for long-term growth. Samsung's collaborations with industry leaders and its robust memory chip business position the company for continued success.
Profit-Taking Leads to Monday Dip in Samsung's Stock Price
On Monday morning in South Korea, Samsung's shares experienced profit-taking, sliding 2.97% to 91,600 won ($64.15 USD). Interestingly, the recent record high in Samsung's stock price was driven by foreign investors steadily buying shares, contrasting with the retail-driven surge during the pandemic. The momentum of AI stocks, including Nvidia, may have influenced fund managers to invest in Samsung.
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Alphabet, the parent company of Google, achieved an all-time high last month, reaching $256.70. Google's Gemini AI is renowned for its capabilities, propelling Alphabet's stock performance. Samsung stands out for its strategic partnerships in the AI sector, coupled with the potential for a memory chip Supercycle, positioning the company for continued growth.
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