Samsung’s Q1 Profits Skyrocket to Record $38B Amid AI Chip Demand Surge
Samsung Electronics revealed on Tuesday that its first-quarter operating profit is projected to hit an unprecedented 57.2 trillion won ($37.8 billion). This figure signifies an eight-fold increase from the same period last year, far outstripping analyst predictions.
The South Korean tech behemoth’s preliminary earnings guidance estimates a revenue of 133 trillion won ($88 billion) for the January-March quarter. This represents a staggering 68% leap year-over-year. The remarkable results are fueled by the escalating demand for high-bandwidth memory (HBM) chips utilized in AI data centers. This is as cloud service providers intensify orders to bolster artificial intelligence services.
Samsung has risen as a pivotal player alongside SK hynix in providing high-performance chips to companies striving to keep up with the rapidly advancing AI industry. The operating profit alone for Q1 2026 has reportedly outstripped Samsung’s total profit for the entire preceding year. This has led to the company’s shares soaring by more than 240% over the past year.
Analysts anticipate an even more robust performance in the forthcoming quarters as memory chip prices persist in their upward trend due to limited supply. Samsung’s semiconductor division is responsible for approximately 95% of the company’s profits. Detailed financial breakdowns are set to be unveiled on April 30.
Source: CNBC