AI boom pushes Samsung to $1T

The first StrictlyVC of 2026 hits SF on April 30. Tickets are going fast. Register now. Buy one Disrupt pass, and get the second at 50% off. Ends May 8. Register now. TechCrunch Desktop Logo TechCrunch Mobile Logo LatestStartupsVentureAppleSecurityAIApps EventsPodcastsNewsletters SearchSubmit Site Search Toggle Mega Menu Toggle Topics Latest AI boom pushes Samsung to $1T Kate Park 6:54 AM PDT · May 6, 2026 Samsung reached a $1 trillion valuation on Wednesday as shares of the South Korean tech giant surged more than 10%, driven by the ongoing artificial intelligence frenzy fueling demand for chips. The milestone makes Samsung only the second Asian company to cross the trillion-dollar threshold, after TSMC. The news comes on the heels of a blockbuster earnings report last week, in which Samsung posted profits eight times higher than the same period a year ago. Every company building AI right now needs chips, and Samsung makes the memory chips that power those AI systems. Demand is surging while supply struggles to keep up, pushing prices higher and boosting Samsung’s profits. There’s another reason shares surged on Wednesday. Reports came out yesterday that Apple has been in talks with both Samsung and Intel to manufacture chips for Apple devices on U.S. soil. Apple has long relied almost exclusively on TSMC in Taiwan for its chip production. If Samsung lands the deal, it would mark a significant shift in the global semiconductor supply chain. At the heart of Samsung’s profit boom is high-bandwidth memory (HBM), a type of chip critical to running AI systems, which has dramatically improved the company’s margins. But the competition is intense. Rival SK Hynix, a South Korean semiconductor giant, is aggressively vying for the same market, keeping the pressure on Samsung to maintain its edge. The AI boom is driving a chip shortage across the semiconductor industry, as the world’s three largest memory chip makers, Samsung, SK Hynix, and Micron, struggle to meet runaway demand from AI data centers. All three companies have pulled investment away from their consumer chip businesses to ramp up production of HBM, which carries substantially higher margins and has become essential to powering large-scale AI infrastructure. Despite Wednesday’s historic surge, Samsung still faces headwinds. Workers are threatening an 18-day strike later this month over a larger share of the AI windfall. Meanwhile, the company’s phone and TV divisions, which also need to buy those same memory chips to build their products, are paying a steep price for the same chips powering Samsung’s record profits. When you purchase through links in our articles, we may earn a small commission. This doesn’t affect our editorial independence. Kate Park Reporter, Asia Kate Park is a reporter at TechCrunch, with a focus on technology, startups and venture capital in Asia. She previously was a financial journalist at Mergermarket covering M&A, private equity and venture capital. May 27 Athens, Greece StrictlyVC Athens is up next. Hear unfiltered insights straight from Europe’s tech leaders and connect with the people shaping what’s ahead. Lock in your spot before it’s gone. Most Popular As workers worry about AI, Nvidia’s Jensen Huang says AI is ‘creating an enormous number of jobs’ Lucas Ropek Anthropic and OpenAI are both launching joint ventures for enterprise AI services Russell Brandom Ouster’s new color lidar is coming to replace cameras Sean O'Kane This tiny, magnetic e-reader could stop you from doomscrolling Amanda Silberling Uber wants to turn its millions of drivers into a sensor grid for self-driving companies Connie Loizos Elon Musk testifies that xAI trained Grok on OpenAI models Tim Fernholz On the stand, Elon Musk can’t escape his own tweets Tim Fernholz X LinkedIn Facebook Instagram youTube Mastodon Threads Bluesky TechCrunchStaffContact UsAdvertiseCrunchboard JobsSite Map Terms of ServicePrivacy PolicyRSS Terms of UseCode of Conduct AnthropicElon MuskMeta EarningsSatya NadellaMythosTech LayoffsChatGPT © 2026 TechCrunch Media LLC.