The market value of South Korea’s Samsung Electronics smashed past $1 trillion for the first time Wednesday as the firm rides an AI chip boom that has sent Seoul’s Kospi stock index to record highs.

The company has emerged as a key player, alongside domestic rival SK hynix, in the supply of high-performing chips that are wanted by firms racing to keep up with the fast-evolving artificial intelligence industry.

Samsung logged record first-quarter profit last week, with the announcement coming as the South Korean government pushes to break into the world’s top three AI powers alongside the United States and China.

The company’s stocks spiked nearly 12% in morning trading on Wednesday, pushing its market value past the $1 trillion milestone.

SK hynix was up around 10%.

That came as the country’s benchmark Kospi index soared more than five percent, blowing through 7,000 points for the first time at the opening bell.

Samsung’s shares have risen around 300% over the past year as the AI boom boosts South Korean growth.

The company is only the second Asian company after Taiwan Semiconductor Manufacturing to hit a market capitalisation of $1 trillion, financial Bloomberg News reported.

The firm said last week that operating profit surged 750% on-year to a record first-quarter high of 57.2 trillion won ($39.3 billion).

It attributed the strong performance to “AI technology innovations and proactive market response”, adding that it expected “strong memory demand to continue” through the second quarter as the buildout of AI infrastructure continues apace.