Samsung Electronics shares hit around $125 for first time

Samsung Electronics’ stock price surpassed 180,000 won (US$124.72) for the first time on February 13, reaching 182,400 won (US$126.39) by 9:05 a.m. on the Korea Exchange, up 2.13% from the previous day.

Analysts from Korea Investment & Securities noted potential for further gains in Samsung Electronics and SK hynix despite recent concerns about valuation sustainability.

Researcher Yeom Dong-chan said current indicators suggest no immediate need to reduce exposure to these stocks, citing improved return on equity (ROE) for Samsung and SK hynix that explains their price-to-book ratios (PBR).

He added that other companies have not shown ROE increases sufficient to justify higher PBRs, highlighting the relative valuation of these chipmakers.

Yeom noted the market’s concern is how long the strength in these stocks will last but sees no need for quick exposure cuts.

🔗 Source: Chosunbiz

🧠 Food for thought

Implications, context, and why it matters.

A record-breaking profit surge is fueling Samsung’s stock rally

Samsung posted an all-time high quarterly operating profit of KRW 20.1 trillion in the fourth quarter of 2025 2.
An AI-led memory upcycle tightened supply for advanced chips and gave suppliers more leverage on pricing 3.
Some consumer DRAM products nearly doubled or tripled over two months, while NAND prices are expected to rise by more than 50% in the first quarter 4.
Samsung said its memory business pushed quarterly revenue and operating profit to all-time highs 5.
Profitability improved at major Korean chipmakers, including return on equity (ROE), a measure of how efficiently a company generates profit from shareholders’ capital, which can help explain higher price-to-book ratios (PBR), a valuation metric that compares a company’s share price with the value of its net assets 1.

Samsung’s AI boom signals higher costs for everyday electronics

Samsung is prioritizing high-bandwidth memory (HBM) and other higher-value products for AI data centers, which has added to shortages for chips used in personal computers and mobile devices and lifted costs 5, 3.
TrendForce, a market research firm that tracks the memory and storage industry, expects other major NAND suppliers to raise prices by 50–80% in the first quarter, citing industry sources 4.
DigiTimes, a technology and semiconductor industry publication, reports that memory suppliers are shortening contract durations and rolling out new pricing mechanisms as prices climb 6.
Samsung executives said higher memory prices help its chip unit, yet they expect added costs to weigh on its smartphone and display businesses 5.