Shares of Samsung Electronics rose as much as 4.8% on Tuesday after the South Korean technology giant forecast record quarterly profit amid strong demand for artificial intelligence chips. Shares later pared gains to close 1.76% higher%.
In its preliminary earnings guidance, Samsung projected its operating profit for the January-March quarter to reach 57.2 trillion won ($37.8 billion), up more than eightfold from just 6.69 trillion won a year ago.
That profit, if it comes to fruition, would represent a quarterly record — nearly three times the previous high — and would exceed estimates of 42.3 trillion won from LSEG SmartEstimate, which is weighted toward forecasts from analysts who are more consistently accurate.
Meanwhile, the company’s estimated consolidated revenue was projected to surge nearly 70% from a year ago to 133 trillion Korean won.
“Samsung Electronics’ first-quarter revenue and operating profit have reached a scale that rivals global Big Tech peers,” MS Hwang, Research Analyst at Counterpoint Research, told CNBC.
Samsung’s upbeat guidance was likely driven by its memory chip business, particularly demand for high-bandwidth memory chips used in AI computing.
Demand for high-bandwidth memory chips has become so explosive over the past year that it has triggered shortages across the memory market, driving massive price and volume spikes for memory makers like Samsung.
According to Counterpoint’s Hwang, commodity memory prices are projected to continue surging by more than 50% in the second quarter, with supply-tightness unlikely to ease soon.
The results also reflect that Samsung has been strengthening its position in high-bandwidth memory chips after giving up an early lead to its South Korean rival SK Hynix.
Samsung’s Device Solutions division, which includes memory chips, accounted for 39% of Samsung’s revenues and 57% of its operating profits in 2025.
The company is expected to report full earnings later this month. Despite Samsung’s upbeat projections, the firm could still face some headwinds this year from the ongoing conflict in the Middle East.
The U.S.-Israel war against Iran has disrupted shipments of materials vital to semiconductor manufacturing, including helium, raising the risk of manufacturing disruptions for companies such as Samsung and SK Hynix.
“If the Middle East conflict ends quickly, it will not significantly impact profits. However, if it persists for several months or longer, it will lead to severe consequences,” Hwang said.
