Samsung stock soars 5% on AI chip boom and 8-fold profit surge

Samsung Electronics' shares climbed up to 4.8% on Tuesday as the South Korean tech leader anticipated reaching unprecedented quarterly profit levels, fueled by robust demand for AI chips. The shares later adjusted to reflect a 0.52% increase.

In its early revenue outlook, Samsung foresees its operating profit for January through March to achieve KRW 57.2 trillion (equivalent to $37.8 billion), a growth more than eightfold from KRW 6.69 trillion the previous year.

If realized, this profit would set a new quarterly record — nearly tripling the preceding peak — and would surpass LSEG SmartEstimate's prediction of 42.3 trillion won, which considers the forecasts of the most consistently accurate analysts.

Additionally, the corporation’s consolidated revenue is anticipated to increase by nearly 70% year-over-year, reaching 133 trillion Korean won.

Samsung's positive forecast is likely driven by the performance of its memory chip division, particularly due to the growing need for high-bandwidth memory chips in AI processing.

Samsung's Device Solutions segment, encompassing memory chips, comprised 39% of the company’s revenue and 57% of its operating profit in 2025.

The surge in demand for high-bandwidth memory chips has been so significant over the past year that it has caused shortages across the memory sector, leading to substantial price and volume increases for chip manufacturers like Samsung.

The outcomes also show that Samsung is solidifying its hold in the high-bandwidth memory chip market after initially falling behind its South Korean competitor SK Hynix.

The firm plans to release its complete earnings later this month.