Samsung shares hit record on HBM4 pricing power and AI demand

Samsung Electronics shares climbed to a record high on Thursday after reports that the company is negotiating significantly higher prices for its next-generation artificial intelligence memory chips, reinforcing investor optimism about the durability of AI-driven semiconductor demand.

The stock rose as much as 5.4% to 190,900 won ($132.34) on the Korea Exchange, surpassing the 190,000 level for the first time as trading resumed after a three-day holiday.

It later traded 3.9% higher at 188,300 won, outperforming the benchmark Kospi’s 2.5% gain.

According to local newspaper Chosun Ilbo, Samsung is looking to price its latest high-bandwidth memory chip, HBM4, at around $700 per unit, up to 30% higher than the previous generation.

The rally also tracked gains in US technology stocks overnight.

Nvidia shares advanced after Meta Platforms agreed to deploy “millions” of its AI processors over the coming years, while Apple is accelerating development of three new wearable devices tied to AI-powered hardware.

AI memory pricing power returns

The reported pricing move highlights renewed confidence in the profitability of AI memory products. Analysts say the industry continues to benefit from tight supply conditions and strong demand from data center operators.

Samsung’s HBM4 price would imply operating profit margins of roughly 50% to 60%, according to Bloomberg Intelligence analyst Masahiro Wakasugi.

A shortage of advanced memory chips has been supporting both Samsung and rival SK Hynix, helping South Korea’s Kospi index rise 31% this year and making it the world’s best-performing stock market.

SK Hynix had previously priced HBM4 chips supplied to Nvidia in the mid-$500 range and may move closer to Samsung’s higher pricing, the newspaper reported.

Comeback in the HBM race

Samsung has been attempting to reclaim leadership in high-bandwidth memory after initially trailing domestic rival SK Hynix and US-based Micron Technology in the early stages of the AI boom.

Last week, the company announced it had begun mass production and commercial shipments of HBM4 chips used in AI processors.

The new chip operates at 11.7 gigabits per second compared with 9.6 Gbps for the earlier HBM3E model, with potential speeds rising to 13 Gbps.

Nomura analysts C.W. Chung and Eon Hwang said in a WSJ report that Samsung is likely to benefit from higher average selling prices and greater shipments following the early release.

The analysts estimate the company could command a 30%–40% premium for HBM4 over HBM3E.

They also raised their target price for Samsung shares by 32% to 290,000 won while maintaining a buy rating.

Earnings outlook improves

The strengthening outlook for memory demand is expected to support the company’s semiconductor business.

Nomura now forecasts operating profit of 44 trillion won for the January-March quarter, up from an earlier estimate of 33 trillion won.

If Samsung supplies more HBM chips to Nvidia, pricing differences with SK Hynix may narrow in 2026 because those chips command higher prices than products sold to other customers, Wakasugi said.