Samsung Forecasts Record Profit as AI Chip Demand Surges

Samsung Electronics said it expects record first-quarter profit, driven by surging demand for artificial intelligence memory chips, as the company’s preliminary guidance points to a sharp rebound in its semiconductor business.

The South Korean tech giant forecast operating profit of 57.2 trillion won ($37.8 billion) for the January–March period, up more than eightfold from 6.69 trillion won a year earlier. If realized, the figure would mark a quarterly high and come in well above analyst estimates of 42.3 trillion won, according to LSEG SmartEstimate. Revenue is also projected to climb nearly 70% year over year to 133 trillion won.

Shares rose as much as 4.8% following the announcement before closing 1.76% higher, reflecting investor reaction to the scale of the earnings outlook.

The company’s memory segment appears to be the primary driver of the surge, particularly high-bandwidth memory chips used in AI systems. Demand for these components has tightened supply across the market, pushing both pricing and shipment volumes higher for manufacturers.

“Samsung Electronics’ first-quarter revenue and operating profit have reached a scale that rivals global Big Tech peers,” MS Hwang, a research analyst at Counterpoint Research, told CNBC.

High-bandwidth memory has become a critical part of AI infrastructure, supporting the data-intensive workloads behind modern models. According to Counterpoint, prices for commodity memory are expected to rise by more than 50% in the second quarter, with supply constraints likely to persist.

Samsung has been working to strengthen its position in this segment after falling behind domestic rival SK Hynix, which gained an early lead in high-bandwidth memory. The company’s Device Solutions division—which includes its chip business—accounted for 39% of revenue and 57% of operating profit in 2025, underscoring the growing weight of semiconductors in its overall performance.

Full earnings are due later this month, but the outlook highlights how AI-related demand is reshaping the company’s financial trajectory. At the same time, external risks remain. Ongoing conflict in the Middle East has disrupted shipments of key materials used in chip production, including helium, raising the possibility of supply chain strain.

“If the Middle East conflict ends quickly, it will not significantly impact profits. However, if it persists for several months or longer, it will lead to severe consequences,” Hwang said.

The forecast positions Samsung at the center of a tightening memory market, where AI-driven demand is lifting prices while exposing the fragility of global semiconductor supply chains.

This analysis is based on reporting from CNBC.

Image courtesy of Unsplash.

This article was generated with AI assistance and reviewed for accuracy and quality.