Samsung Electronics Hits Record High Amid AI Expansion Plans
Samsung Electronics recently witnessed a 7.5% surge in its shares, reaching a record high of 136,900 yuan. A memo by co-CEO Jun Young Hyun sparked market optimism as he highlighted the company’s renewed focus and customer sentiment stating, ‘Samsung is Back.’
AI Integration: A Big Leap for Samsung
Samsung has announced an ambitious plan to double its AI-powered mobile devices from 400 million to 800 million units by 2026. This expansion, spearheaded by co-CEO T M Roh, will integrate cutting-edge technologies like Google’s Gemini model and Samsung’s Bixby assistant under its ‘Galaxy AI’ branding. The initiative indicates Samsung’s drive to enhance its presence in the AI sector while supporting Google’s battle against competitors like OpenAI.
Key AI applications on Samsung devices include search features and generative AI tools for tasks such as image editing, translation, and productivity, highlighting the increasing demand for AI-powered consumer experiences.
Memory Chip Shortage: A Growing Challenge
While Samsung accelerates its AI adoption, the global memory chip shortage poses significant hurdles. Higher chip costs may lead to increased smartphone prices, putting pressure on consumer demand. The shortage affects multiple product lines, including mobile phones, home appliances, and televisions, threatening profit margins and production schedules.
‘As this situation is unprecedented, no company is immune to its impact,’ explained Roh, emphasizing the need for long-term strategies to alleviate the crisis. The company is working on innovative solutions with long-term partners to mitigate risks.
Keeping Up with Competitors
Despite these challenges, Samsung remains a leader in the foldable smartphone market, holding nearly two-thirds of the market share in Q3 2025. However, the growth of foldable devices has yet to meet expectations, with limited applications and engineering challenges cited as reasons. Notably, repeat purchases within this category remain high, which could signal long-term success as more advanced foldable models and applications emerge.
Samsung also aims to reclaim its leadership in the smartphone market from Apple and defend its television and home appliance market share from aggressive Chinese competitors.
The Road Ahead
Samsung’s stock performance and innovative strides in AI suggest a promising future. With plans to integrate AI into all products and services, Samsung continues to push the boundaries of technology while addressing global challenges like the memory chip shortage.
For those looking to enhance their productivity with AI, consider the Samsung Galaxy Lineup, which includes AI-driven features designed for smarter everyday use.
