Samsung Stock Surges as Nvidia Deal Nears and Buyback Program Begins
Samsung Electronics announced a 2.5 trillion won ($1.73 billion) share buyback program running from January 8 to April 7, fueling a 4% stock surge on Wednesday. The repurchased shares will fund performance-linked compensation for employees and executives under a scheme introduced in October 2025.
The rally extends Samsung's $350 billion market value gain since early 2023, marking a turnaround after trailing rival SK Hynix. Analysts project record 2026 earnings of $60 billion as memory chip prices rebound. The company now trades at 10 times forward earnings, down from 25 times in 2023.
Key catalysts include Samsung's impending deal to supply high-bandwidth memory chips to Nvidia, revealed during CEO Jensen Huang's AI infrastructure discussions. Preliminary earnings due Thursday are expected to show annual profits more than doubling.