Samsung rises on HBM4 production announcement

Samsung Electronics shares rose above 180,000 won on Feb. 13, closing at a record high. During intraday trading, the company’s market capitalization briefly surpassed that of JPMorgan Chase, the largest U.S. bank, lifting Samsung to 14th in global market value rankings.

The stock closed at 181,200 won, up 1.46 percent from the previous session. Just one day after finishing above 170,000 won for the first time on a closing basis, Samsung crossed the 180,000 won mark for the first time. Samsung Electronics preferred shares also climbed 4.5 percent, bringing their market capitalization to 104 trillion won and surpassing Hyundai Motor’s 102 trillion won.

At one point, the shares surged to 184,400 won, pushing Samsung’s market capitalization to about $840 billion and briefly ranking it 14th globally. The stock later gave up part of its gains, and a rise in the won-dollar exchange rate narrowed the gap, allowing JPMorgan Chase to move back ahead by the close. Even so, the difference in market value narrowed significantly.

Investor sentiment was boosted by Samsung’s announcement the previous day that it had begun mass production of sixth-generation high-bandwidth memory chips, or HBM4, becoming the first in the industry to do so. On the same day, Japan’s Nomura Securities raised its operating profit forecasts for Samsung to 24.3 trillion won this year and 32.2 trillion won next year. Positive assessments that the company had demonstrated its technological competitiveness, including through diversifying foundry customers, also supported the rally.

Samsung on Feb. 13 nominated Kim Yong-kwan, head of management strategy for the Device Solutions division and a company president, as a new inside director. Analysts said the addition of a key semiconductor executive to the board highlights the company’s focus on strengthening its technological edge.

Despite Samsung’s strong gains, the benchmark Kospi index fell 0.28 percent to close at 5,507.01. The decline was attributed to overnight weakness on Wall Street. On Feb. 13, major stock indexes in Japan, China and Hong Kong also dropped by about 1 percent.


홍석호 will@donga.com