Samsung Electronics shares climbed almost 5 per cent on Tuesday after the South Korean technology giant forecast blockbuster quarterly profits, propelled by soaring demand for chips that power artificial intelligence. The stock touched a high of 4.8 per cent in early trading before easing to end 0.52 per cent up.
In its initial earnings preview, Samsung anticipates operating profit of 57.2 trillion won for the first quarter from January to March. That would mark more than an eightfold jump from the 6.69 trillion won posted a year earlier and shatter the company’s previous quarterly record by nearly three times.
The projection handily beats LSEG SmartEstimate’s consensus of 42.3 trillion won, compiled from the most reliable analyst forecasts. Consolidated revenue is expected to surge almost 70 per cent year on year to 133 trillion Korean won.
The upbeat numbers stem largely from Samsung’s memory chip business, where high-bandwidth memory (HBM) vital for AI data centres has triggered widespread shortages. Prices and production volumes have rocketed as a result, benefiting producers like Samsung.
Last year, the Device Solutions unit—which includes memory—accounted for 39 per cent of revenues and 57 per cent of operating profits. Samsung has poured resources into catching SK Hynix, its domestic rival that once dominated advanced HBM. Recent TrendForce figures indicate Samsung has clawed back share, with yields on next-generation 12-layer HBM3E now exceeding 70 per cent.
Broader AI fervour amplifies the momentum. Nvidia’s latest GPU shipments doubled late last year, while global infrastructure spending on the technology is set to top $200 billion in 2026, according to McKinsey.
“Samsung’s memory turnaround is the standout AI narrative this year,” noted KB Securities analyst Lee Jang-yong.
The company plans to release detailed results later this month, with investors watching for signs of prolonged strength amid persistent chip constraints.