Samsung Stock Hits Record High After AI Expansion Announcement

TLDR

• Samsung Electronics shares climbed 7.5% to close at a record high of 136,900 yuan on Monday after co-CEO Jun Young Hyun’s optimistic employee memo
• The company will expand AI-enabled mobile devices from 400 million to 800 million units in 2026 using Google’s Gemini and Samsung’s Bixby
• Hyun’s memo stating customers said “Samsung is Back” fueled speculation about a potential NVIDIA supply agreement
• A worldwide memory chip shortage caused by AI demand threatens Samsung’s smartphone and consumer electronics production
• The company is set to announce preliminary fourth-quarter earnings this week following late 2025 supply deals with OpenAI

Samsung Electronics closed at an all-time high on Monday. The stock gained 7.5% to reach 136,900 yuan.

Co-CEO Jun Young Hyun’s year-end message to employees triggered the rally. Hyun wrote that customers told the company “Samsung is Back.”

His comments raised expectations about a possible supply deal with NVIDIA. Samsung has been racing to match competitor SK Hynix in the high-bandwidth memory sector.

Co-CEO T M Roh announced plans to expand AI-powered devices in 2026. The company will grow from 400 million to 800 million mobile products featuring Galaxy AI capabilities.

Galaxy AI combines Google’s Gemini model with Samsung’s Bixby assistant. This expansion provides Google a major advantage against OpenAI and other AI competitors.

Search remains the most popular AI feature on phones. Consumers also frequently use generative AI tools for image editing, productivity, translation, and summary features.

Chip Supply Crisis Impacts Multiple Product Lines

The global memory chip shortage creates competing pressures for Samsung. Higher chip prices help Samsung’s semiconductor division.

Supply constraints affect Samsung’s entire product portfolio. Mobile phones, televisions, and home appliances all face production challenges.

Roh acknowledged that price increases might be necessary. He called some impact from rising memory chip costs “inevitable.”

The company is working with partners on long-term strategies to reduce the impact. Samsung holds the number one position in the global TV market.

Research firms IDC and Counterpoint forecast a potential smartphone market contraction next year. Higher component costs could push up phone prices and reduce consumer demand.

Market Dynamics and Competitive Pressure

Samsung battles competitors on multiple fronts. Counterpoint data shows Apple became the leading smartphone maker in 2025.

Chinese manufacturers compete across Samsung’s product categories. Samsung held nearly two-thirds of the foldable smartphone market during Q3 2025.

Growth in the foldable phone segment has disappointed expectations. Roh pointed to engineering challenges and limited applications designed for the hardware.

He predicts foldables will achieve mainstream adoption in two to three years. Foldable phone buyers show a “very high” rate of repeat purchases in the same category.

Samsung’s Monday surge continues momentum from late 2025. Tighter memory chip availability and higher processor prices powered those earlier gains.

The company lagged SK Hynix initially in capturing AI-driven HBM demand. Samsung closed the gap during mid-to-late 2025 through supply agreements with OpenAI.

South Korean media reports point to strong fourth-quarter earnings results. Samsung plans to release preliminary quarterly figures this week.

The KOSPI index advanced 1.9% on Monday, boosted by Samsung’s performance. Competitor SK Hynix rose nearly 3% to reach its own record high.

Samsung seeks to reclaim smartphone market leadership from Apple. The company also aims to defend its position against Chinese rivals in televisions and home appliances through integrated AI services across consumer products.

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