Samsung Electronics' Market Capitalization Approaches $900 Billion After Contract With Tesla
The market capitalization of Samsung Electronics has approached $900 billion for the first time in history. The company is currently valued at $876.24 billion, which is 358% higher than a year ago, when it was worth $244.51 billion. The stock price has risen above $130.
What is known
The turning point was the signing of a $16.5 billion contract with Tesla for chip production. Additional market momentum was provided by reports from South Korea about Samsung's intention to set the price of HBM4 chips at $700 per unit, which is about 30% more than last year.
Samsung, along with SK Hynix and Micron, is part of a select group of companies capable of producing HBM3, HBM3E, and HBM4 standard memory. These chips are key components for artificial intelligence accelerators used by Amazon, Alphabet, Meta, and Microsoft.
The company has already started mass production of HBM4 and, according to sources, plans to supply a significant portion of the volumes to Nvidia. HBM4 memory and SOCAMM2 solutions will be used in the new Vera Rubin platform, expected to launch this year. Analysts predict that memory shortages will persist until at least 2027, creating conditions for Samsung's continued revenue and profit growth.
Source: SamMobile
