The key driver behind this exceptional performance is the memory segment, in which Samsung is the world’s largest player. The sharp increase in memory chip prices during the fourth quarter, estimated at 40% to 50%, is a direct result of exponential demand driven by the artificial intelligence boom. Manufacturers of high-performance AI processors, led by companies such as Nvidia, require ever-growing volumes of specialized memory for training and operating models, significantly strengthening the bargaining power of suppliers. According to analysts at Counterpoint Research, this phase can be described as a “hyper-bull” market – a situation in which conditions for memory manufacturers are even more favorable than during the cyclical peak in 2018. Looking ahead, price growth is expected to continue into the first half of 2026, indicating a stable pace of future profit growth.

Samsung share price performance over the past five years

Shortages

However, the strong production focus on AI memory also has its downside. Capacity allocated to artificial intelligence is lacking in traditional segments such as personal computers and smartphones. As a result, overall costs for consumer electronics manufacturers are rising, while memory producers are benefiting significantly from this situation. The takeaway for investors? A signal that the value chain is temporarily tilting in favor of suppliers of core technological components.

Competitive Pressure and Strategic Challenges

Despite record profits, Samsung’s position is not without risks. In the segment of high-bandwidth memory (HBM), which is crucial for the most powerful AI processors, SK Hynix currently holds a certain lead. Micron also remains a significant player, having recently announced its exit from the consumer components segment in favor of AI infrastructure. Samsung is aware of this weakness, and as a result, expanding HBM production capacity is among its key strategic priorities for 2026.

Investment Perspective

Samsung’s share price has risen by approximately 145% over the past twelve months, reflecting a solid return of investor confidence and the company’s ability to capitalize on the expansion of artificial intelligence.* Although the market environment remains relatively volatile, the combination of record margins, strong demand, and favorable pricing dynamics provides Samsung with an exceptionally strong foundation for the period ahead. In the near term, investors should focus on the upcoming release of audited quarterly results, which will traditionally offer deeper insight into how sustainable the growth of the memory chip market will be in 2026. [2]

* Past performance is not a guarantee of future results.

[1,2] Forward-looking statements are based on assumptions and current expectations that may be inaccurate or dependent on the current economic environment, which may change. Such statements are not guarantees of future performance. They involve risks and uncertainties that are difficult to predict. Actual results may differ materially from those expressed or implied in any forward-looking statements.