Samsung Electronics (KRX: 005930) stock surged on Monday after the South Korean technology giant revealed a semiconductor deal with Tesla (NASDAQ: TSLA) worth $16.5 billion.
As of press time, Samsung’s stock was trading at ₩70,400 ($50.82), up 6.83% for the day and 3.38% over the past week.
The rally followed a regulatory filing confirming the contract, alongside a public post by Tesla CEO Elon Musk, who identified Tesla as the counterparty.
The agreement, which commenced on July 26, 2025, and is set to run through December 31, 2033, will see Samsung manufacture semiconductors, specifically, next-generation AI chips, for Tesla.
In a post on X, Musk revealed that Samsung’s massive new chip facility in Texas will be used to produce Tesla’s upcoming AI6 chips.
Musk noted that while Taiwan Semiconductor Manufacturing Company (NYSE: TSMC) is currently producing Tesla’s AI5 chips, Samsung is already handling the older AI4 generation.
He added that the American electric vehicle company will work closely with Samsung to improve chip production efficiency, even stating he will “walk the line personally” to accelerate development. The chips will be manufactured using Samsung’s 2-nanometer process technology.
The announcement comes just days ahead of Samsung’s second-quarter earnings release. The company had earlier warned that Q2 profit could fall by more than half, citing sluggish demand in its foundry division and stiff competition in the AI memory chip space.
Samsung has lagged behind its rivals, such as SK Hynix and Micron, in developing high-bandwidth memory (HBM), a crucial component in AI chipsets.
Tesla stock regaining strength
Meanwhile, Tesla stock is seeing a brief resurgence following its disappointing Q2 earnings report. As of press time, TSLA shares were trading at $316.06, up 3.52%. In pre-market trading, the stock had gained an additional 1.59% to reach $321.
The stock found support after Tesla announced plans to expand its robotaxi service to San Francisco.
Notably, TSLA had come under pressure to slip below $300, following a 12% year-over-year decline in total revenue to $22.4 billion. Revenue from vehicle sales dropped 16% compared to the same period in 2024.
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