Samsung stock price hits 70,400 KRW, the year’s highest, with a 6.83% increase
Samsung stock Just Hit a New High. Its stock price jumped 6.83% to reach 70,400 KRW, the highest it’s been all year. That’s big news. It shows growing trust from investors and rising interest in the tech giant’s future.
But what’s behind this sudden spike? And why are people so excited about Samsung right now?
We’re seeing major shifts in the tech world from AI chips to next-gen smartphones and
Samsung is right in the middle of it. This rise isn’t just about numbers on a screen. It tells a bigger story about innovation, global demand, and how the company is positioning itself for what’s next.
Let’s break down what’s going on and what it could mean for investors, tech fans, and the global market.
Samsung Stock: Key Stats and Market Reaction
Samsung’s stock shot up 6.83% in one day, pushing it to 70,400 KRW, its highest level this year. That move came as investors cheered a major new chip deal. The rapid rise helped lift the broader KOSPI index to above 3,200, with Samsung alone accounting for over one‑third of the monthly gain in July. We see this rally as a strong vote of confidence in the company’s chip ambitions.
Factors Driving the Surge
The biggest driver was Samsung’s new $16.5 billion contract to supply Tesla with next‑generation AI6 chips. The contract runs through December 2033 and marks the largest single-client order in Samsung’s foundry history. Elon Musk confirmed Tesla as the client and stressed that Samsung’s Texas factory will build the chips, and he plans to walk the production line personally to boost efficiency.
This deal matters because Samsung’s foundry business has been losing money. Analysts estimate over 5 trillion won in losses in H1 2025. The Tesla agreement promises to help reverse that trend. It also brings hope that Samsung can finally start volume production of 2 nm chips in its Texas plant in 2025 despite earlier delays due to yield issues.
Analyst Reactions and Upgrades
Most analysts responded with optimism. They noted that this order boosts Samsung’s credibility in contract chipmaking. While some caution that the deal may involve generous pricing to attract Tesla, they still see strategic value in jump‑starting the Texas foundry and improving manufacturing yields. A few brokerage firms have already nudged target prices higher for Samsung stock, citing its renewed foundry momentum and stronger investor sentiment.
Samsung’s Strategic Moves
We see Samsung moving fast to regain market share. For years, the company trailed TSMC, which holds around 66% of the global foundry market versus Samsung’s single‑digit share. Now, Samsung has committed around $40 billion toward building the Taylor, Texas, fab supported by U.S. Chips and Science Act subsidies. The Tesla deal is its first major client win and may attract further contracts.
At home, South Korea continues expanding its national semiconductor cluster, with plans to invest nearly $470 billion over 23 years to boost self‑sufficiency in materials, parts, and fabrication. We believe Samsung aims to align with national goals and lead this domestic strategy.
Impact on Broader Market & Tech Sector
Samsung’s surge lifted other tech stocks and supported the overall market. As of late July, Samsung had accounted for more than a third of the KOSPI’s monthly rise, contributing significantly to South Korea’s market strength. Meanwhile, rivals like SK Hynix lagged, with shares falling roughly 8% over the same period. This divergence shows how investors are rotating toward players with stronger forward momentum.
International investors, especially foreigners, have bought heavily into Samsung, pushing foreign ownership past 50% after the Supreme Court removed uncertainties around leadership transitions. This supports the idea that Samsung is once again seen as a global tech leader.
Risks and Outlook Ahead
There are still risks. Samsung’s foundry has struggled with yield rates on its 3 nm and early 2 nm nodes, limiting its ability to compete with TSMC. The company also expects a steep drop in Q2 operating profit, down 56% year‑on‑year to roughly 4.6 trillion won due to U.S. export curbs on AI chips to China. In addition, a planned 25% U.S. tariff on Korean exports starting August 1 adds further pressure.
Despite these headwinds, we believe the Tesla contract could mark a turning point. If Samsung can scale up production smoothly and win more clients, it may rebuild its foundry business and regain investor trust. The multi‑year deal provides steady revenue and helps justify its costly Texas expansion.
Final Words
We can see that Samsung’s stock jump reflects more than short‑term excitement. The Tesla partnership marks a strategic shift. It may revive its foundry business and bring new momentum. But challenges like chip yields, macro risk, and stiff competition remain. Still, if Samsung can build on this deal, investors and tech watchers may view this moment as the start of a long‑term comeback.
Frequently Asked Questions (FAQ)
Samsung’s share price is high because of a big chip deal with Tesla. Investors believe this deal will help Samsung grow and make more money in the future.
Samsung’s stock price recently reached 70,400 KRW. This is the highest it has been this year, following strong news and interest from investors in its chip business.
Samsung stock may be a good buy for some, but not for everyone. It depends on market risks, goals, and how well Samsung keeps growing its chip business.
Disclaimer:
This is for information only, not financial advice. Always do your research.