Shares of Samsung Electronics moved higher on Tuesday after the tech giant signaled a blockbuster quarter, driven by surging demand for AI-related chips.
The stock climbed as much as 4.8% במהלך the session before closing with a 1.76% gain, reflecting strong investor confidence in the company’s outlook.
According to preliminary estimates, Samsung expects operating profit for the first quarter to reach around 57.2 trillion won (about $37.8 billion). That figure is more than eight times higher than the same period last year and well above analyst expectations of 42.3 trillion won. If confirmed, it would mark the highest quarterly profit in the company’s history—nearly tripling its previous record.
Revenue growth is just as impressive. Samsung forecasts sales of roughly 133 trillion won, a nearly 70% year-over-year increase. It would also be the first time the company crosses the 100 trillion won mark in quarterly revenue, highlighting the scale of its current growth.
AI Memory Demand Drives Growth
The main force behind this surge is booming demand for high-bandwidth memory (HBM), a key component used in AI hardware. These advanced memory chips are essential for powering AI accelerators produced by companies like NVIDIA and AMD.
As AI adoption accelerates, data centers are expanding rapidly, and companies are investing heavily in training large AI models. This has pushed demand for memory chips to new highs, tightening supply and driving up prices across the industry.
Market trends suggest that memory prices linked to data center use could continue rising in the coming months. Some estimates even point to a potential 50% increase in commodity memory prices in the second quarter, as supply struggles to keep up with demand.
Samsung’s memory business has become its core profit engine. In 2025, its Device Solutions division—home to its chip operations—accounted for 39% of total revenue and a significant 57% of operating profit.
Despite the strong momentum, Samsung is still working to strengthen its position in the HBM segment after losing early ground to rival SK Hynix, which moved faster in supplying next-generation AI memory chips.
Risks Remain Despite Strong Outlook
While the numbers paint a bullish picture, there are potential risks ahead. Ongoing geopolitical tensions in the Middle East could disrupt the semiconductor supply chain.
Shipments of critical materials like helium—essential for chip manufacturing—are already facing delays. The broader U.S.–Israel conflict involving Iran has raised concerns about prolonged disruptions.
Analysts warn that if these tensions ease quickly, the impact may be minimal. However, a prolonged conflict could create serious challenges for chipmakers, potentially affecting production and profitability.
Samsung is expected to release its full earnings report later this month. For now, the company appears to be riding the powerful wave of the AI boom, with its chip business leading the charge.
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