South Korea's Supreme Court has dismissed all fraud charges against Samsung chairman Jay Y. Lee, ending a long-standing legal battle related to the 2015 merger of Samsung subsidiaries.

This legal victory clears the way for Samsung to focus on advancing its AI chip development amid rising global competition, with the company planning to launch its HBM3E memory chips by early 2026.

Samsung aims to strengthen its position in the AI semiconductor market, which is expected to grow at a 35% CAGR through 2030, by investing in product innovation, material breakthroughs, and strategic partnerships.

Following the legal clearance, Samsung's valuation metrics remain attractive, with a low EV/EBITDA ratio of 4.86 and a strong net cash position of $67 billion as of mid-2025.

Samsung's stock rose 15% in the second half of 2024 after the legal ruling, but it still trades at a forward P/E of 10x, significantly undervalued compared to industry leaders like NVIDIA.

Recent acquisitions, including FlaktGroup and Xealth, demonstrate Samsung’s commitment to diversifying its AI technology portfolio and expanding its presence in high-growth sectors.

Despite a 55.9% YoY profit drop in Q2 2024 caused by supply chain issues, demand for AI chips is expected to outpace current constraints, supporting future growth.

With legal issues resolved, Samsung plans to redirect capital toward high-growth areas such as AI semiconductors and green technology, enhancing its investment appeal.

The legal victory is seen as a stabilizing factor for the South Korean economy and Samsung’s leadership, encouraging increased investment and innovation.

The acquittal removes longstanding legal uncertainties, which had previously depressed Samsung’s valuation, paving the way for a potential re-rating driven by advancements in 2nm chip production and AI tech acquisitions.

This legal clearance enables Samsung to resume M&A activity and over $10 billion in R&D investments, focusing on high-margin segments and cutting-edge semiconductor technology.

Lee Jae-yong, who became chairman in 2022 following his father’s death and a presidential pardon, has faced ongoing legal challenges but is now positioned to lead Samsung’s growth in AI and semiconductors.

While some shareholders previously opposed the 2015 merger, the legal resolution is expected to boost investor confidence and support Samsung’s strategic expansion.