Samsung profit jumps over eight-fold as AI boom drives chip demand surge
Samsung posted record quarterly earnings, with operating profit surging more than eight times year-on-year
Samsung Electronics reported a dramatic surge in earnings for the first quarter, with operating profit rising more than eight-fold compared to a year earlier, as the global artificial intelligence (AI) boom continues to tighten supply in the memory chip market.
The South Korean technology giant posted operating profit of KRW 57.2 trillion, slightly above analyst expectations of KRW 55.28 trillion, while revenue came in at KRW 133.9 trillion, also beating forecasts.
The results marked a new quarterly record for the company and reflected a year-on-year profit increase of more than 750%.
The strong performance was largely driven by Samsung’s semiconductor division, which has benefited from rising demand for high-performance chips used in AI data centres.
As cloud providers and major tech firms expand infrastructure for generative AI systems, demand for advanced memory products has surged, creating a supply shortage across the industry.
Samsung said its memory business achieved record quarterly sales by focusing on high-value AI-related products, while broader industry price increases also supported profitability.
The company added that demand for server memory is expected to remain strong through the second half of the year, driven by continued expansion from hyperscale cloud providers and growing adoption of advanced AI systems.
A key growth area for Samsung has been high-bandwidth memory (HBM), a critical component in AI accelerators used by companies such as Nvidia.
Limited supply and rising demand for these chips have pushed prices higher across the sector.
The results highlight how the AI infrastructure boom is reshaping the semiconductor industry, with manufacturers prioritising high-margin AI components over consumer electronics, further tightening global supply.