Amid surging demand for AI and soaring chip prices, Samsung’s record-breaking profit projection signals both opportunity and looming risks.
Samsung Electronics has projected a sharp rise in first-quarter operating profit, driven by surging demand for semiconductors used in artificial intelligence (AI) infrastructure. The company estimates earnings of 57.2 trillion won (£34.7 billion) for the January-March 2026 period, an eightfold increase from 6.7 trillion won a year earlier and well above analyst expectations of 40.6 trillion won, according to Reuters.
One of the world’s largest memory chipmakers, Samsung seem to have benefited from a shortage of traditional semiconductors, as AI data centres absorb supply and push up prices.
Contract prices for dynamic random-access memory (DRAM) chips rose more than 50% in the quarter, according to research firm TrendForce. Analysts suggest customers accelerated purchases in anticipation of further increases, contributing to the profit surge.
Samsung’s results mark a new record, nearly tripling its previous quarterly high of 20 trillion won set late last year. Revenue is expected to climb 68% to 133 trillion won, with the semiconductor division accounting for the bulk of earnings.
The company also gained from a weaker South Korean currency, which boosted overseas returns.
Shares in Samsung rose 1.4% on Tuesday, April 7, 2026, outperforming the broader market. However, analysts caution that rising energy costs linked to the conflict in the Middle East may weigh on margins in the coming months.
Spot DRAM prices have already eased, reflecting difficulties among end-users in absorbing elevated costs. Concerns about a slowdown have triggered a sell-off in memory chip stocks, with Samsung’s shares down 11% since late February, though still up 61% this year.
While high-bandwidth memory chips account for only a small share of sales, Samsung has narrowed its gap with rival SK Hynix by supplying NVIDIA with its latest HBM4 chips.
Analysts expect continued strength in commodity DRAM and NAND chips, with forecasts suggesting Samsung’s operating profit could reach 75 trillion won in the current quarter. The company will release detailed results on 30 April 2026.
