South Korea’s Samsung Electronics forecast a record quarterly profit Tuesday, sending its shares higher, as surging demand for artificial intelligence (AI) chips and high-bandwidth memory products fueled expectations of an unprecedented earnings boom.
In preliminary guidance for the January-March quarter, Samsung projected operating profit of 57.2 trillion won (US$37.8 billion), more than eight times the 6.69 trillion won reported a year earlier. The figure would mark a quarterly record, nearly triple the company’s previous peak, and exceed analysts’ estimates of 42.3 trillion won, according to LSEG SmartEstimate.
Consolidated revenue was expected to jump almost 70 percent to 133 trillion won, reflecting broad-based growth in the company’s Device Solutions division, which includes DRAM and NAND memory products. The unit accounted for 39 percent of Samsung’s revenues and 57 percent of operating profits in 2025.
Shares of Samsung rose as much as 4.8 percent in early trading before trimming gains to trade up 0.52 percent, reflecting investor excitement over the company’s strong earnings outlook.
Analysts said Samsung’s surge underscores the growing influence of AI computing on the global semiconductor market. High-bandwidth memory chips, essential for training large language models and other AI applications, have seen demand outpace supply, driving both prices and volumes higher.
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“Samsung is benefiting from the AI revolution in a way few companies have experienced before,” said a Seoul-based technology analyst. “High-bandwidth memory is the backbone of AI computing, and global shortages have created a perfect storm for profit growth.”
The company’s preliminary results also indicate that Samsung is regaining ground in high-bandwidth memory after losing some market leadership to rival SK Hynix in recent years. Investments in production capacity, advanced fabrication techniques, and research and development have strengthened Samsung’s ability to meet soaring demand from AI and cloud computing customers.
Global memory markets have been transformed over the past year. Shortages and price spikes, partly caused by AI adoption, have benefited major producers such as Samsung, SK Hynix, and Micron Technology. Analysts estimate that AI-related memory consumption will continue to accelerate through 2026, potentially reshaping revenue forecasts for leading chipmakers.
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Samsung’s guidance also highlights the company’s diversified business model. Its semiconductors and memory chips provide significant earnings leverage, even as other units, such as smartphones, displays, and consumer electronics, face cyclical pressures. The company’s foundry services, supplying contract chip manufacturing to global technology firms, also benefit indirectly from the memory boom.
Industry observers said the record profit guidance reinforces Samsung’s position as the world’s largest memory chip maker by revenue, giving it a strategic advantage in setting prices and expanding market share in high-performance memory segments.
The company is expected to release full earnings later this month, offering a detailed breakdown of performance across divisions. Investors will be watching closely for updates on margins, capital expenditure plans, and output guidance, particularly as competition intensifies in the AI memory space.
For the global technology sector, Samsung’s AI-driven earnings surge illustrates the profound impact of artificial intelligence on hardware demand. Analysts say the company’s success may encourage competitors and investors to accelerate investments in AI-capable memory and related infrastructure.
While challenges remain, including global supply constraints and geopolitical tensions affecting production and shipping, Samsung’s preliminary guidance signals an unprecedented earnings opportunity. As AI adoption continues to expand worldwide, the company appears well-positioned to capture both short-term windfalls and longer-term strategic advantages in memory and semiconductor markets.
