Samsung Hits Record High on Plan to Double AI Devices
Samsung Electronics surges 7.5% as the company targets 800 million Gemini-powered mobile devices in 2026, doubling last year's deployment.
Samsung Electronics shares surged 7.5% Monday on the Korea Exchange, hitting a record high after the company announced plans to double its AI-powered mobile devices to 800 million units this year. The rally extends Samsung's year-to-date gains to roughly 12% in just two trading sessions.
The announcement comes ahead of Samsung's "First Look" event at CES 2026, where CEO TM Roh is expected to detail the company's vision for integrating Google's Gemini AI across its product lineup.
"We will apply AI to all products, all functions, and all services as quickly as possible," Roh said in a statement. He noted that Galaxy AI brand awareness has jumped from 30% to 80% in just one year, suggesting consumers are increasingly prioritizing AI features in purchase decisions.
The Gemini Partnership Deepens
Samsung deployed Gemini features to 400 million devices last year. Reaching 800 million would represent a significant acceleration, covering the majority of Samsung's smartphone, tablet, and potentially wearable ecosystem.
For Alphabet, Samsung's commitment provides a massive distribution channel for Gemini at a time when the AI chip competition is intensifying. As the largest supporter of Google's Android platform, Samsung's embrace of Gemini gives Google an edge against OpenAI and other competitors trying to establish mobile AI footholds.
The partnership creates mutual dependencies. Samsung gets best-in-class AI capabilities without the R&D burden of building from scratch. Google gets guaranteed scale across hundreds of millions of devices. Both companies benefit as AI features become table stakes for smartphone differentiation.
Fighting on Two Fronts
Samsung's AI push addresses two competitive threats simultaneously. Apple reclaimed smartphone market leadership in 2025, and Chinese manufacturers continue pressuring Samsung's mid-range portfolio.
The aggressive Gemini rollout aims to restore Samsung's premium positioning. If AI features become the primary differentiator for flagship purchases, Samsung's head start on deployment could translate to market share gains through the year.
But there's a complication. Samsung's own statement acknowledged the company faces challenges from a global shortage of memory chips, which pressures margins on smartphones and other devices. Roh conceded that no company is "immune" to the crisis and raised the possibility of price increases to offset rising costs.
Market analysts predict the shortage may actually shrink the global smartphone market in 2026, which would make Samsung's AI bet even more critical. In a contracting market, premium features become the path to maintaining revenue even as unit volumes decline.
Fourth Quarter Profit Jump Expected
Samsung is set to flag a profit jump for Q4 2025 later this week, fueled partly by the same chip shortage that's constraining supply. Memory prices have strengthened as demand outpaces available inventory, benefiting Samsung's semiconductor division even as it creates challenges for its consumer electronics arm.
The mixed dynamics explain why Samsung's stock reaction focused on the AI announcement rather than waiting for earnings. Investors are betting that AI integration will prove more important to long-term competitiveness than near-term margin pressures from component costs.
Implications for the AI Trade
Samsung's rally offers a different angle on the AI investment thesis. While US markets have focused heavily on chip makers like NVIDIA and infrastructure plays, Samsung represents AI as a feature integration story rather than a pure technology play.
This matters for sector rotation. If AI capabilities become embedded features rather than standalone products, the value may accrue more to device manufacturers and platform owners than to chip suppliers alone.
For traders watching the broader technology sector, Samsung's move also signals that CES 2026 could drive meaningful stock moves this week. With NVIDIA's Jensen Huang keynoting later Monday and AMD's Lisa Su responding in the evening, the AI narrative has multiple catalysts ahead.
Samsung's record high suggests investors are willing to pay up for credible AI integration stories. The question is whether the 800 million device target proves achievable given supply constraints, and whether Gemini features actually drive the purchase decisions Samsung is counting on.