The world’s largest memory chipmaker expects operating profit to jump more than eightfold year-on-year, far exceeding market expectations, News.Az reports, citing Reuters.
Samsung estimated its Q1 operating profit at 57.2 trillion won ($37.9 billion), compared with just 6.7 trillion won a year earlier.
The figure also surpassed analyst forecasts of around 40.6 trillion won, highlighting the strength of demand from AI data centres.
Rising demand has strained supply, leading to a sharp increase in chip prices—particularly for memory components used in servers and AI systems.
The company’s semiconductor business is the main driver behind the surge, accounting for the vast majority of total profits.
Strong demand for DRAM and NAND chips—essential for handling AI workloads—has led to price increases, with some estimates pointing to further gains in the coming months.
Samsung has also been closing the gap with rivals in advanced memory, including high-bandwidth memory (HBM) used in AI chips.
A weaker South Korean currency has further boosted Samsung’s earnings when converted to dollars.
However, analysts warn that rising energy costs and geopolitical tensions could slow demand growth, particularly if AI infrastructure spending cools.
There are also early signs that chip prices may be stabilizing after a rapid surge.
While Samsung’s mobile division performed better than expected, margins are likely to face pressure due to rising component costs.
The company remains the world’s second-largest smartphone maker after Apple.
Samsung’s revenue is projected to grow by around 68% year-on-year, with detailed earnings results set to be released later this month.
Despite the strong performance, investors are closely watching whether the current AI-driven chip boom can be sustained—or if the market is approaching a peak in pricing and demand.
