Samsung Electronics Co has reached a $1 trillion market valuation, driven by surging demand for chips used in artificial intelligence (AI), with the world's largest memory maker's stock nearly quadrupling over the past year.

The milestone comes after the South Korean company's shares rallied as much as 15 per cent in Wednesday's trade, making it only the second Asian firm after Taiwan Semiconductor Manufacturing Co (TSMC) to achieve the mark.

The gains also lifted South Korea's benchmark Kospi index above 7,400 level.

Samsung, along with memory peer SK Hynix Inc and TSMC, remains central to a broader shift that has positioned Asia as a key hub in the global AI ecosystem.

The country's dominance in semiconductor manufacturing, combined with growing data infrastructure investments, has fuelled strong investor interest in chipmakers.

This trend has led to a sharp rally in its technology stocks. SK Hynix shares have surged more than 81 per cent over the past month, while TSMC has climbed 21.77 per cent during the same period.

Earlier, Samsung's semiconductor division reported a sharp rise in profitability for the March quarter, with earnings jumping 48-fold year-on-year (YoY), supported by robust demand from AI-focused data center customers and improved margins.

Separately, Apple Inc has reportedly held exploratory discussions about potentially using Samsung to manufacture processors for its devices in the United States, which, if pursued, could provide an alternative to its long-standing reliance on TSMC.