Samsung profit soars 48-fold as AI demand creates unprecedented memory chip shortage

Samsung's Chip Profit Soars 48-Fold on AI-Fueled Memory Shortage

Samsung Electronics Co.'s semiconductor arm beat expectations with a 48-fold jump in profit after AI's reliance on memory delivered hefty margins. The unit, which competes with SK Hynix Inc. and US-based Micron Technology Inc., reported an operating income of 53.7 trillion won ($36 billion) in the first quarter. The result compares with the average analyst estimate of 35.3 trillion won. Group-wide net income rose to 47.1 trillion won. The results reflect massive spending by hyperscalers including Meta Platforms Inc. and Amazon.com Inc. on artificial intelligence infrastructure. The hundreds of billions of dollars pouring into data centers and other hardware are spurring some investors to bet that memory -- one of the key bottlenecks to AI's rise -- is no longer beholden to boom-and-bust cycles and can tap sustained growth. Accelerators such as those made by Nvidia Corp. are limited by the speed and capacity of memory to supply data, making DRAM a key factor in determining the quality of AI services. That's given rise to the theory of a memory supercycle and helped Samsung's shares climb about 88% this year after more than doubling in 2025. That argument faces persistent concerns about whether the pace of AI spending is sustainable. Meta shares sank overnight on fears that the big sums committed to AI won't pay off. Earlier this week, stocks linked to OpenAI slumped after it reportedly failed to meet sales and user targets, rekindling doubts AI will deliver sufficient profits anytime soon. Still, analysts expect Samsung's chip division to build on its record-breaking profit over the next several quarters as contract prices continue their steep upward trajectory amid limited supply. They point to a more than 180% rise in Korea's semiconductor exports during the first 20 days of April as a sign of continued momentum for both Samsung and SK Hynix. Counterpoint Research expects a 60% quarter-on-quarter rise in average DRAM contract prices in the April-June period, analyst Tom Kang said. Average contract prices for DRAM rose 42% in March from February, according to the research firm's monthly memory price tracker. Samsung -- the world's largest memory maker -- is considering a shift toward multiyear contracts with the aim to stabilize supply and ease concerns about shortages, co-Chief Executive Officer Jun Young-hyun told shareholders at an annual general meeting last month. Such a move would further bolster prices and provide a buffer against cyclical downturns. The profits generated by the AI boom are also prompting Samsung employees to demand a bigger share, with workers threatening an 18-day general strike in May. Last week, more than 30,000 workers gathered outside Samsung's main chip hub in Korea's southern city of Pyeongtaek. Analysts are divided on whether a prolonged stoppage would materially dent chip output or simply create short-term volatility, since Samsung's operations are highly automated. "A strike could exacerbate the memory shortage further, potentially driving prices even higher," said Greg Roh, an analyst with Hyundai Motor Securities Co. "The bigger worry may be customer confidence, as any sense of instability could be damaging."

Samsung Electronics sees robust AI demand after Q1 profit surges eightfold to set record

SEOUL, April 30 (Reuters) - Samsung Electronics (005930.KS), opens new tab said on Thursday its operating profit jumped eightfold to a record in the first quarter, underpinned by higher chip prices as an artificial intelligence boom led to a supply crunch. Samsung expects earnings to improve further in the second quarter, saying investment in AI infrastructure would continue to expand, driving up memory chip prices. The world's ⁠top memory chipmaker posted 57.2 trillion won ($38.43 billion) in operating profit for the January-to-March period, in line with its estimate of 57.2 trillion won and up from 6.69 trillion won a year earlier. The South Korean company's revenue rose 69% to 133.9 trillion won in the quarter from a year earlier. The AI data centre boom has spurred chipmakers to shift capacity to making ⁠advanced chips used in Nvidia's (NVDA.O), opens new tab AI accelerators, squeezing supply of traditional chips and driving up prices. Operating profit at Samsung's chip business, its main cash cow, surged to a record 53.7 trillion won in the ⁠first quarter, accounting for 94% of its total profit. Its mobile and network division profit declined by 30% to 3 trillion won, squeezed by ⁠surging chip prices. Samsung Electronics shares rose 1.3% after the earnings announcement. Shares of Samsung Electronics, Asia's second-most valuable company after Taiwan's ⁠TSMC (2330.TW), opens new tab, have surged 88% this year, outstripping the wider market's 59% gain. ($1 = 1,488.2900 won) Reporting by Hyunjoo Jin, Heekyong Yang and Joyce Lee; Editing by Muralikumar Anantharaman and Christopher Cushing Our Standards: The Thomson Reuters Trust Principles., opens new tab

Samsung profit surges over eight-fold to beat estimates as AI boom fuels memory chip crunch

The Samsung exhibition stand features the prominent ''A new era of mobile agentic AI'' slogan by the South Korean company Samsung Electronics. Samsung Electronics reported an over eight-fold increase in first-quarter operating profits on Thursday, hitting a new record and beating analysts' estimates, as demand for artificial intelligence servers and a memory chip shortage boosted earnings. Here are Samsung's first-quarter results compared with LSEG SmartEstimate, which is weighted toward forecasts from analysts who are more consistently accurate: The South Korean technology giant's quarterly profit climbed more than 750% from a year earlier to a fresh record. The company also posted record revenue, up about 70% year over year. The profits came in line with Samsung's own estimates of 57.2 trillion won, and were more than its full-year 2025 profits of 43.6 trillion won. The earnings extend momentum from the final quarter of last year, when Samsung surpassed its prior record of 17.6 trillion won set in the third quarter of 2018. Samsung's record earnings came on the strength of its chip business. South Korea's largest company by market capitalization is a major producer of memory chips, semiconductor foundry services and smartphones. The electronics and memory giant has emerged as a major beneficiary of the global AI data center boom, which has constrained the supply of memory chips used in devices such as smartphones, PCs and game consoles. In an earnings report, Samsung said that its memory business "surpassed its quarterly sales record by addressing high-value-added AI demand despite limited supply availability, with industry-wide memory price increases also a contributing factor." The company expects server memory demand to remain strong into the second half of the year as hyperscalers continue to accommodate AI adoption and demand for agentic AI accelerates. The strong performance comes as Samsung expands its high-bandwidth memory, or HBM, business, a key component in AI data center chips. Chipmakers such as Nvidia -- the world's most valuable company -- have driven demand for HBM, amid limited supplies. As manufacturers prioritize production for higher-margin AI applications, supply constraints have pushed up prices for memory used in consumer electronics.

Samsung Electronics posts record quarterly profit on AI boom

Seoul (AFP) - Samsung Electronics said on Thursday its quarterly operating profit had jumped 750 percent year-on-year to a record 57.2 trillion won ($38.4 billion) on the back of strong sales of chips crucial for artificial intelligence. The South Korean technology giant has emerged as a key player -- along with rival SK hynix -- in the supply of high-performing chips in demand from companies racing to keep up with the fast-evolving AI industry. Their strong performance has come as the South Korean government has pledged to make the country one of the world's top three AI powers alongside the United States and China. Samsung said in its earnings report on Thursday it had "achieved record quarterly revenue and operating profit through AI technology innovations and proactive market response". It had already said this month that it expected profit to reach a quarterly record. Net profit was 47.1 trillion won, beating forecasts by a Bloomberg survey of analysts. Sales hit 133.9 trillion won, an all-time quarterly high. Its chips division also beat expectations with a huge rise in profit to 53.7 trillion won, accounting for the bulk of the unit's total. The company said its memory arm "surpassed its quarterly sales record by addressing high-value-added AI demand despite limited supply availability, with industry-wide memory price increases also a contributing factor". It added that it expected "strong memory demand to continue" through the second quarter as the buildout of AI infrastructure continues apace. South Korea's benchmark Kospi stock index opened at a fresh high of over 6,700 on Thursday following strong earnings figures from Samsung and US technology giants. Samsung's shares have risen by around 300 percent over the past year as the AI boom boosts South Korean growth and pushes the stock market to new records. The company has seen strong orders from major technology firms for high-bandwidth memory -- a type of chip that is used in data centres and AI "accelerators", which are useful in carrying out demanding tasks and computation. That is also pushing up the cost of less flashy chips used in consumer electronics -- threatening higher prices for phones, laptops and other devices worldwide.

Samsung Q1 2026 Results Driven by AI Memory Demand Surge - 50x Memory profits

Samsung has posted its Q1 2026 financial results, and the numbers clearly reflect the ongoing AI-driven boom in the semiconductor sector. The company reported revenue of approximately $90.6 billion, alongside operating profit reaching $38.7 billion. The standout contributor was the memory division, which continues to benefit from accelerating demand tied to AI data centers and high-performance computing infrastructure. The scale of demand for advanced memory technologies, particularly high-bandwidth memory, has now exceeded available supply. Samsung confirmed that it is unable to fully meet current demand levels and expects the supply gap to widen further into 2027. In response, the company has entered into multi-year supply agreements with key customers aiming to secure long-term access to memory capacity. HBM4 is already in mass production and shipping for next-generation AI accelerator platforms, with further advancements in development. While semiconductors delivered strong growth, other business segments faced headwinds. The mobile division reported declining profitability, primarily due to rising component costs linked to increased memory pricing. The display business also saw reduced earnings, reflecting weaker demand conditions. These shifts highlight how the broader organization is being affected by the same supply constraints driving gains in the semiconductor segment. On the manufacturing side, Samsung's foundry operations are running at full utilization for advanced nodes. The company continues to expand its 2 nm production capabilities, while development of 1.4 nm technology remains on schedule. Additional growth areas include AI-focused chips, high-performance computing, automotive applications, and enterprise storage solutions such as next-generation SSDs. Samsung expects demand for memory, foundry services, and advanced display technologies to remain strong throughout 2026. However, supply limitations and pricing pressures are likely to remain key factors shaping the market. The company's current trajectory suggests that AI infrastructure expansion will continue to dominate the semiconductor landscape, with memory supply becoming one of the most critical constraints in the years ahead. Sources: Samsung, Reuters

Samsung Posts Record High Revenue in Q1 2026 Driven by AI Demand

* Samsung Electronics posted a record revenue for Q1 this year * Samsung expects continued strong demand for memory * Harman's earnings declined in Q1 due to higher costs Samsung Electronics posted record revenue for the first quarter ending March 31, 2026, marking a 43 percent increase over the previous quarter. It reported a consolidated revenue of KRW 133.9 trillion (roughly Rs. 8,00,000 crore) for the Q1 and posted a record operating profit. However, earnings from the foundry business declined in the first quarter. During its Q1 earnings call, Samsung reportedly predicted that the ongoing memory shortage is unlikely to ease before 2027. The company expects the situation could become even more severe in the coming days. Samsung Electronics Posts Record Q1 Profit Samsung Electronics reported record quarterly profit for the January March period this year, with consolidated revenue reaching an all-time high of KRW 133.9 trillion and operating profit hitting an all-time high of KRW 57.2 trillion (roughly Rs. 3,00,000 crore). The growth was driven mainly by the brand's Device Solutions (DS) Division, especially the Memory Business, which benefited from the AI demand and the technological leadership in the memory market. The MX and Networks businesses of Samsung posted KRW 38.1 trillion (roughly Rs. 2,04,000 crore) in consolidated revenue and KRW 2.8 trillion (roughly Rs. 18,000 crore) in operating profit for the first quarter. The sale of premium smartphones helped the Device eXperience (DX) Division post a QoQ sales increase of 19 percent. However, Samsung says some departments, such as the Foundry Business and the Display division, were down due to seasonal effects, higher memory prices, and cost pressures. Samsung's Display Corporation (SDC) posted KRW 6.7 trillion (roughly Rs. 40,000 crore) in consolidated revenue and KRW 0.4 trillion in operating profit for the first quarter. The SDC reported a decline in earnings for the small and medium display business due to seasonal effects and the impact of higher memory prices. Demand for OLED gaming monitors helped the department maintain stable sales. For the second half of this year, Samsung expects continued strong demand for memory, driven by AI infrastructure and services, while planning further growth through flagship devices, foldables, and advanced chips, including the development of the 1.4nm node and a second-generation 2nm process. Samsung's Visual Display (VD) and Digital Appliances (DA) businesses generated KRW 14.3 trillion in revenue and KRW 0.2 trillion (roughly Rs. 1,200 crore) in operating profit in Q1 2026. Harman's earnings declined in Q1 due to higher costs and seasonal factors, but the brand says the sales will improve later this year, backed by automotive supply and premium audio sales. Samsung Flags Prolonged Memory Crunch Additionally, Reuters reports that during its earnings call, Samsung warned that the ongoing memory chip crunch will persist into next year and the supply shortage will worsen in 2027. "Our supply falls far short of customer demand," Kim Jaejune, a Samsung memory chip business executive, reportedly said. "Based solely on the demand currently received for 2027, the supply-to-demand gap for 2027 is set to widen even further than ⁠in 2026."

Samsung's chip profit posts almost 50-fold growth but supply worries cloud 2027 outlook

Samsung Electronics achieved record profits, fueled by a massive surge in chip income. The company anticipates a severe chip shortage next year as clients invest heavily in AI. This demand is driving up prices for Samsung's memory chips. Samsung is also preparing for a potential strike by workers in its chip division. Seoul: Samsung Electronics on Thursday reported record quarterly profit driven by a 49-fold jump in chip income, saying it expects a severe supply shortage to deepen next year as clients spend on AI, driving up prices of its memory chips. The world's top memory chipmaker by sales also said it has signed multi-year binding contracts with customers hoping to lock in supplies, without disclosing identities or terms. A boom in the construction of AI ⁠data centres ⁠has spurred Samsung and chipmaking peers to allocate production capacity to advanced chips that Nvidia uses in its so-called AI accelerators. Even so, chipmakers are struggling to meet demand while the move also squeezes the supply of conventional chips. "Our supply falls far short of customer demand," Kim Jaejune, a Samsung memory chip business executive, told analysts on its post-earnings call. "Based solely on the demand currently received for 2027, the supply-to-demand gap for 2027 is set to widen even further than in 2026." Continued development in AI technology will translate into sustained demand growth yet supply will remain constrained for the time being considering the lead time required for new factory construction, Kim said. A day earlier, U.S. technology majors including Alphabet , Amazon and Microsoft all signalled sustained AI spending. Revealing the extent of the AI boom, Samsung said January-March operating profit in its ⁠cash cow chip division reached a record 53.7 trillion won ($36.15 billion) from just 1.1 trillion won in the same period a year earlier. That made up 94% of the quarter's 57.2 trillion won record total. That figure matched Samsung's estimate announced earlier this month and compared to 6.69 trillion won ⁠a year prior. Overall revenue rose 69% on year to 133.9 trillion won. Samsung said conflict in the Middle East has not disrupted chipmaking as the firm has secured inventory and diversified sources of gases used in manufacturing. However, it flagged the risk of higher transportation costs caused by rising oil prices, and said it will ensure stable power supplies in cooperation with the South Korean government. Shares of Samsung slipped 0.8% after rising as much as 1.8% following the earnings announcement. The stock has surged 88% this year, outstripping the broader market's 59% gain. SAMSUNG READIES FOR LOOMING STRIKE Samsung has been trying to narrow the gap with compatriot SK Hynix in supplying high bandwidth memory (HBM) chips to Nvidia, having fallen behind to the detriment of both profit and share price. SK Hynix last week reported record quarterly profit following a fivefold jump in earnings and forecast a prolonged chip industry boom, downplaying any concern about profit margins for chips nearing their peak. On Thursday, Samsung said it started the industry's first mass-production sales of HBM4 chips for Nvidia's Vera Rubin platform in February and that it is on track to more than triple HBM revenue this year versus last year. It also said it expects to increase capital expenditure sharply ⁠this year to meet AI demand. Still, it is bracing for potential production disruption as unions representing the majority of its workers in South Korea, especially in its chip division, consider striking over pay. Samsung said it "plans to respond to the fullest extent through a dedicated organisation and response system to ensure that production is not disrupted." The chipmaker recently told a court hearing that a strike would cause "astronomical damage" and production decline, said a spokesperson at the National Samsung Electronics Union. Samsung declined to comment on the matter. CHIP PRICES HIT MOBILE EARNINGS Rising prices of conventional chips dragged on Samsung's other businesses such as mobile phones and displays. Samsung, the world's second-biggest smartphone maker by sales after Apple, said its mobile and network division will see profitability decline this year, weighed down by rising component costs. Profit in the division fell 35% in the first quarter to 2.8 trillion won. Its display division, which supplies flat-screen displays for customers such as Apple, saw operating profit fall 20% to 400 billion won. ($1 = 1,485.4000 won) (Reporting by Hyunjoo Jin, Heekyong Yang and Joyce Lee; Editing by Muralikumar Anantharaman and Christopher Cushing) (You can now subscribe to our Economic Times WhatsApp channel)

Samsung Posts Record Profit As AI Memory Boom Drives Chip Surge - Samsung Electronics Co (OTC:SSNLF)

AI Memory Boom Powers Samsung's Historic Earnings Growth The South Korean tech giant reported first-quarter revenue of 133.9 trillion won ($89.96 billion), surpassing LSEG estimates of 132.69 trillion won, while operating profit reached a record 57.2 trillion won, topping forecasts of 55.28 trillion won. Operating profit surged more than 750% from a year earlier, exceeding Samsung's entire full-year 2025 profit of 43.6 trillion won, CNBC reported. Revenue climbed about 70% year over year, marking the company's highest-ever quarterly sales. Samsung's semiconductor division was the primary driver, generating 53.7 trillion won in operating profit, up sharply from roughly 1 trillion won in the same period last year. Chip sales soared 225% to 81.7 trillion won, accounting for more than 90% of Samsung's total earnings. "The Memory Business surpassed its quarterly sales record by addressing high-value-added AI demand despite limited supply availability, with industry-wide memory price increases also a contributing factor," the company said in a statement. Global Memory Shortages and AI Data Centers Fuel Chip Price Surge The company benefited from surging demand for advanced memory chips used in AI servers and hyperscale data centers, where supply shortages have significantly raised prices. Samsung said its memory business achieved record quarterly sales by capitalizing on demand for premium AI products, particularly high-bandwidth memory, or HBM, despite industrywide supply constraints. Samsung Expands HBM4 Push Amid Rivalry With SK Hynix Samsung is aggressively expanding production of next-generation HBM4 chips to narrow the gap with competitor SK Hynix, which currently leads the HBM market. While analysts say Samsung has improved significantly in HBM4, SK Hynix remains ahead in market share. According to data from Benzinga Edge, Samsung ranks in the 77th percentile for Growth, highlighting solid performance across short, medium and long-term metrics. Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Photo courtesy: Sybillla via Shutterstock Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.

Samsung Electronics posts record quarterly profit on AI boom - The Economic Times

Samsung Electronics posted a record quarterly profit on Thursday, driven by strong sales of chips crucial for artificial intelligence. South Korea's benchmark Kospi stock index opened at a fresh high of over 6,700 on Thursday following strong earnings figures from Samsung and US technology giants. South Korean tech giant Samsung Electronics posted a record quarterly profit on Thursday, driven by strong sales of chips crucial for artificial intelligence. Operating profit for the first quarter rose over 750 percent year-on-year to 57.2 trillion won ($38.4 billion), the company said in an earnings release. Net profit attributable to shareholders was 47.1 trillion won, beating forecasts by a Bloomberg survey of analysts. Sales hit 133.9 trillion won, an all-time quarterly high. The company said it had "achieved record quarterly revenue and operating profit through AI technology innovations and proactive market response". Its semiconductor division posted 53.7 trillion won in operating profit, accounting for the bulk of the total. The company said its memory arm "surpassed its quarterly sales record by addressing high-value-added AI demand despite limited supply availability, with industry-wide memory price increases also a contributing factor". Samsung Electronics had said this month that it expected its first-quarter operating profit to hit a record. The South Korean government has pledged to make the country one of the world's top three AI powers alongside the United States and China. Samsung has emerged as a key player -- along with rival SK hynix -- in the supply of high-performing chips in demand from companies racing to keep up with the fast-evolving AI industry. South Korea's benchmark Kospi stock index opened at a fresh high of over 6,700 on Thursday following strong earnings figures from Samsung and US technology giants.

Samsung Electronics posts record $38.5 bil. Q1 operating profit on AI chip boom - The Korea Times

People walk past the gate of Samsung Electronics' headquarters in Suwon, Gyeonggi Province, Thursday. Yonhap Samsung Electronics reported 57.23 trillion won ($38.55 billion) in operating profit and 133.87 trillion won in sales for the first quarter of the year, driven by strong demand for memory chips amid the global expansion of artificial intelligence (AI) infrastructure. The company said Thursday in a regulatory filing that both figures marked sharp year-on-year increases of 69.16 percent and 756.1 percent, respectively, setting new quarterly records. Among its business divisions, Device Solutions alone reported 81.7 trillion won in sales and 53.7 trillion won in operating profit. The company attributed the robust numbers to its memory business, which is enjoying a supercycle due to strong demand for high-value-added AI products. In the first quarter, the company became the industry's first to mass-produce and ship high-bandwidth memory 4 (HBM4) and next-generation low-power memory module Small Outline Compression Attached Memory Module 2 (SOCAMM2), adding to solid gains from rising prices for legacy DRAM products. During an earnings call, the company said the average selling prices of DRAM and NAND rose by the low-90 percent range and the high-80 percent range, respectively, in the first quarter, lifting memory business revenue to 74.8 trillion won. The chip design business also saw improved sales on the back of stronger demand for flagship system-on-chip products. The foundry business posted weaker sales due to seasonal factors, but the company said performance is expected to improve as the supply of products such as HBM4 base dies increases. For the second quarter, the company said it will respond more proactively to strong memory demand. It plans to supply its first HBM4E samples achieving 16 gigabits per second of speed to actively meet initial memory demand for new graphics processing units and CPUs scheduled for release in the second half of the year. During the earnings call, the company said its HBM4 production capacity has already been sold out, adding that supply is set to expand in the second half of the year. "HBM4 revenue will account for more than half of our total HBM sales starting in the third quarter and is expected to make up the majority on a full-year basis as well," the company said. Samsung also said it has signed multi-year long-term memory supply agreements with a number of clients, stressing that "such contracts carry stronger binding commitments than in the past" and "are structured to secure both business stability and visibility." In the foundry business, the company said it plans to begin mass production of second-generation 2-nanometer mobile chips in the second half of the year and ramp up mass production of 4-nanometer products and language processing units for AI applications. The Device Experience Division, which includes smartphones, home appliances and other devices, posted 52.7 trillion won in sales and 3 trillion won in operating profit. A point of concern was that 2.8 trillion won of its operating profit came from its smartphone business, which released the Galaxy S26 series in March. Its home appliance and TV businesses ended up posting 200 billion won in operating profit in the first quarter, an improvement over an operating loss of 600 billion won in the fourth quarter of last year. Samsung Electronics said the mobile division is expected to see a decline in sales in the second quarter as the initial boost from new model launches fades, but aims to offset the downturn with the release of new Galaxy A models. For TVs, the company said it will seek to capture demand tied to scheduled global sporting events to drive sales. Samsung Electronics has seen the profitability of its home appliance business significantly impaired, with rumors that the company may shut down production lines including those in Malaysia and withdraw from low-margin markets such as China. The company did not confirm those rumors but said it is "pursuing a strategy of focusing on core businesses to improve business structure" and "reviewing various measures to diversify its profit base." During the earnings call, questions were raised about the potential impact of a strike by its labor unions. The unions have threatened to stage a strike from May 21 to June 7, demanding that the company remove the cap on performance-based bonuses and allocate 15 percent of its operating profit to fund incentives. The company said it has limited visibility on the potential impact, but added: "Even if a strike goes ahead, we plan to activate dedicated teams and response systems to minimize any production disruptions within the bounds of the law." The unions criticized the statement as misleading, saying that it contradicts Samsung Electronics' argument in a court hearing on Wednesday. In its request for an injunction with the Suwon District Court to ban the strike, the company argued that "even a lawful walkout could cause massive damage." The unions said in a statement that "either the company's claim during the earnings call is false or it misled the court." The court plans to deliver its ruling between May 13 and 20. Meanwhile, the company said its R&D spending reached 11.3 trillion won in the first quarter. Its subsidiary Harman posted 3.8 trillion won in sales and 0.2 trillion won in operating profit, while Samsung Display posted 6.7 trillion won in revenue and 0.4 trillion won in operating profit.

Samsung's Net Profit Soars as AI Demand Fuels Record Chip Earnings

Samsung Electronics posted a nearly sixfold surge in first-quarter net profit, on record earnings in its core semiconductor business driven by explosive demand for advanced chips amid the artificial-intelligence boom. The world's largest memory-chip maker is widely expected to continue benefiting from tight supply and strong prices of memory products as the global AI-infrastructure buildout continues. Net profit for the three months ended March reached a record 47.225 trillion won, equivalent to $31.72 billion, a 474% increase from the year earlier, the South Korean technology company said Thursday. That beat a FactSet-compiled consensus estimate of 40.591 trillion won. Revenue also hit a record, jumping 69% to 133.873 trillion won. Operating profit increased more than eightfold to an all-time high of 57.233 trillion won. Both figures were largely in line with the company's preliminary estimates. Samsung's chip-making division drove the stellar earnings growth, posting a record operating profit of 53.7 trillion won. That accounted for more than 90% of the company's total earnings for the quarter, outweighing the sluggish performance in other segments. Higher prices of DRAM and NAND--the two main types of memory chips widely used in electronic goods--pressured Samsung's smartphone and home-appliance businesses by making key inputs and finished products pricier. Analysts largely see Samsung, along with other memory-chip makers, extending record earnings through 2026. Meritz Securities analysts Kim Sun-woo and Woo Seo-hyun said earlier this month that Samsung's operating profit could rise to 73 trillion won in the second quarter, 90 trillion won in the third quarter and 104 trillion won in the fourth quarter. Samsung is set to benefit from sustained AI inference memory demand, with prices of its DDR5 RDIMM--a high-capacity, high-speed module designed for AI servers--likely to accelerate in the second half, Citigroup's Peter Lee and Jayden Oh said in a recent note. The company's stock rose 0.9% after the earnings results, bringing its year-to-date gains to around 90%. Samsung in February said it became the first in the world to mass-produce the most advanced high-bandwidth memory chips, known as HBM4, for AI applications. It plans to provide upgraded HBM4E samples later this year. It is also manufacturing Groq 3 language processing units--the latest AI inference chips--for Nvidia, with shipments due to start in the second half of 2026.

Samsung Electronics sees robust AI demand after Q1 profit surges eightfold to set record

SEOUL, April 30 (Reuters) - Samsung Electronics said on Thursday its operating profit jumped eightfold to a record in the first quarter, underpinned by higher chip prices as an artificial intelligence boom led to a supply crunch. Samsung expects earnings to improve further in the second quarter, saying investment in AI infrastructure would continue to expand, driving up memory chip prices. The world's top memory chipmaker posted 57.2 trillion won ($38.43 billion) in operating profit for the January-to-March period, in line with its estimate of 57.2 trillion won and up from 6.69 trillion won a year earlier. The South Korean company's revenue rose 69% to 133.9 trillion won in the quarter from a year earlier. The AI data centre boom has spurred chipmakers to shift capacity to making advanced chips used in Nvidia's AI accelerators, squeezing supply of traditional chips and driving up prices. Operating profit at Samsung's chip business, its main cash cow, surged to a record 53.7 trillion won in the first quarter, accounting for 94% of its total profit. Its mobile and network division profit declined by 30% to 3 trillion won, squeezed by surging chip prices. Samsung Electronics shares rose 1.3% after the earnings announcement. Shares of Samsung Electronics, Asia's second-most valuable company after Taiwan's TSMC, have surged 88% this year, outstripping the wider market's 59% gain. ($1 = 1,488.2900 won) (Reporting by Hyunjoo Jin, Heekyong Yang and Joyce Lee; Editing by Muralikumar Anantharaman and Christopher Cushing)