Samsung Electronics Shares Hit Record High on AI, Chip Optimism

Core Insights - Samsung Electronics Co. shares reached an all-time high, driven by investor enthusiasm for AI chips and renewed confidence in its memory business [1][2] - The stock rose 6.1% to 94,400 won ($66), with a year-to-date increase of 77%, leading to a market capitalization of $393.5 billion [2] - Investors are optimistic about Samsung's ability to compete with SK Hynix in supplying high-bandwidth memory for AI applications, bolstered by a supply deal with OpenAI [2][3] Financial Performance - Samsung's stock performance has been significantly influenced by the anticipated "supercycle" in legacy DRAM and NAND chip markets due to supply shortages [4] - Morgan Stanley analysts increased their price target for Samsung by 14% to 111,000 won, citing a sharp rise in fourth-quarter memory chip pricing and strong demand expected to last until 2026 [4] - The company's shares closed September with their best monthly performance since 2020, contrasting with the previous peak in 2021 driven by local retail investors [4] Market Context - The substantial gains in Samsung and SK Hynix, with SK Hynix up 146% in 2025, have contributed to South Korea being one of the best-performing stock markets this year, with the benchmark Kospi up 50% year to date [5] - The current rally in Samsung's stock is characterized by a shift in investor sentiment, indicating a belief that the company will not miss out on the AI wave as it did earlier [6]