Samsung Electronics is moving toward a $1 trillion market value driven by the AI memory boom

Investing.com — Samsung Electronics rose 3.63% in the Korean stock market on Tuesday. Analysts say that soaring memory prices and ongoing AI demand could drive this chipmaker’s market value toward $1 trillion.

Morgan Stanley states that Samsung’s path to a $1 trillion market cap will be driven by stronger profitability, expanding profit margins, and sustained pricing power in the memory sector.

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“Samsung’s trillion-dollar era is driven by fundamentals, not just market sentiment,” said Morgan Stanley analysts.

The Korea benchmark index KOSPI also closed up 2.11%, reaching a record high of 5,969.64 points. Memory peers SK Hynix rose 5.68%. The stock has increased 179% over the past six months.

Morgan Stanley raised its target price from 210,000 won to 248,000 won, stating that a model based on a 13% sustainable return on net assets, 11% long-term revenue growth, and 35% cyclical operating profit margin is achievable in an AI-driven environment.

Macquarie set a target price of 340,000 won, implying about an 80% upside, and said memory has become a bottleneck in the era of AI inference.

Physical capacity constraints and the long construction cycles of new wafer fabs are strengthening suppliers’ pricing power, as customers prioritize securing memory supply for AI infrastructure.

The company expects DRAM and NAND prices to remain strong for at least the next two years, forecasting that net profit will increase tenfold from 2025 to 2028, with memory accounting for all profit growth during this period.

“Samsung Electronics is in the best position to capitalize on this multi-year strong memory upcycle. Its product portfolio leans toward commercial memory, especially traditional and low-density chips,” said Macquarie analysts. “Furthermore, only Samsung Electronics can seamlessly ramp up new wafer fabs over the next three years, currently P4, with P5 starting in 2028.”

Citigroup raised its target price from 240,000 won to 280,000 won, forecasting that the average global prices for DRAM and NAND will increase by 171% and 127%, respectively, year-over-year in 2026. The bank now expects Samsung’s operating profit in 2026 to reach 251 trillion won, significantly higher than previous estimates, driven by supply tightness and strong AI server demand.

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