TLDR
- On Monday, shares of Samsung Electronics jumped 7.5% to a record high of 136,900 yuan following positive remarks from co-CEO Jun Young Hyun.
- The chipmaker intends to double the number of AI-powered mobile devices from 400 million to 800 million units in 2026, with Galaxy AI features powered by Google’s Gemini.
- Co-CEO Hyun informed employees that customers said “Samsung is Back,” raising hopes of a supply deal with NVIDIA.
- A global memory chip shortage driven by AI demand could affect Samsung’s smartphone and device production.
- Samsung is expected to report strong fourth-quarter earnings this week after signing supply deals with OpenAI in late 2025.
Samsung Electronics shares soared to an all-time high on Monday. The stock closed up 7.5% at 136,900 yuan.
The increase came after co-CEO Jun Young Hyun’s positive comments regarding the company’s AI progress. In a year-end memo, Hyun told employees that customers said “Samsung is Back.”
The comments sparked optimism about a possible supply deal with NVIDIA. Samsung has been working to catch up with rival SK Hynix in the high-bandwidth memory market.
Co-CEO T M Roh disclosed plans to double the company’s AI-powered devices in 2026. Samsung will expand from 400 million to 800 million mobile products with Galaxy AI features.
The Galaxy AI suite utilizes both the Gemini model and Samsung’s own Bixby assistant. The expansion gives Google a significant boost in the AI race against OpenAI and other competitors.
“We will apply AI to all products, all functions, and all services as soon as possible,” Roh told Reuters. He noted that awareness of Galaxy AI rose from 30% to 80% in just one year.
Memory Chip Shortage Threatens Production
A global memory chip shortage presents both opportunities and challenges for Samsung. The shortage benefits the semiconductor business through higher prices.
However, the crisis threatens the margins of smartphones and other consumer electronics. “As this situation is unprecedented, no company is immune to its impact,” Roh said.
The shortage affects production across Samsung’s product lines. TVs, home appliances, and mobile phones all face supply constraints.
Roh did not rule out price increases. He said some impact from rising memory chip costs was “inevitable.”
Market researchers predict the smartphone market could shrink next year. Higher component costs may drive up phone prices and dampen demand.
Competition and Market Position
Samsung faces pressure from multiple directions. Apple is set to become the top smartphone maker in 2025, according to Counterpoint research.
Chinese rivals challenge Samsung in smartphones, TVs, and home appliances. The company controlled nearly two-thirds of the foldable smartphone market in Q3 2025.
The foldable phone segment has grown more slowly than expected. Roh attributed this to engineering complexities and a lack of suitable applications.
He anticipates foldables will become mainstream within two to three years. A “very high” percentage of foldable users choose the same segment for their next purchase.
Samsung’s stock increase extends the gains from the final quarter of 2025. Tighter memory chip supplies and rising processor prices drove those increases.
The company was initially behind SK Hynix in AI-fueled HBM demand. Samsung caught up in mid-to-late 2025 by signing supply deals with OpenAI.
Reports from South Korean media suggest substantial fourth-quarter earnings. Samsung is expected to release preliminary results this week.
The KOSPI index rose ١.٩% on Monday, supported by Samsung’s gains. Rival SK Hynix also climbed nearly 3% to a record high.
