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Samsung Smashes Records with $42B Q1 Profit on AI Chip Boom

Samsung Electronics estimated a record first-quarter operating profit of 57.2 trillion won, smashing analyst expectations. The surge is driven by booming demand for premium memory chips, like HBM, from the artificial intelligence industry. While the semiconductor division thrived, the mobile business faced pressure from rising costs, with its profit estimated to have fallen. Analysts have significantly raised their full-year profit outlooks for the company, citing long-term contracts and sustained AI-driven demand.

Key Points: Samsung Q1 Profit Soars on AI Chip Demand, Beats Forecasts

  • Record 57.2T won Q1 profit
  • AI memory chip demand surge
  • Revenue hits 133T won high
  • Mobile unit profit declines
  • Annual outlook raised sharply
3 min read

Samsung Electronics posts record operating profit in Q1, beats expectations

Samsung Electronics posts record Q1 operating profit of 57.2 trillion won, far exceeding expectations, driven by strong demand for premium memory chips for AI.

"With global data center operators absorbing 60 percent of Samsung's shipments... the expansion of investment in AI infrastructure is driving memory demand. - Kim Dong-won"

Seoul, April 7

Samsung Electronics on Tuesday estimated its first-quarter operating profit to have surpassed 50 trillion won for the first time, driven by strong demand for premium memory chips from the artificial intelligence industry.

The South Korean tech giant projected an operating profit of 57.2 trillion won for the January-March period, surging from 6.61 trillion won a year earlier, according to earnings guidance released by Samsung Electronics.

The operating profit was 36.7 percent higher than the average estimate, according to a survey by Yonhap Infomax, the financial data firm of Yonhap News Agency.

Samsung Electronics' operating profit for all of 2025 was 43.6 trillion won.

In the fourth quarter of 2025, Samsung Electronics posted an operating profit of 20 trillion won, which at the time marked a new quarterly high.

Revenue rose 68.1 percent on-year to 133 trillion won in the first quarter, exceeding 100 trillion won for the first time ever to set a new quarterly high. Net earnings data was not available.

Samsung Electronics did not provide a detailed breakdown of earnings by business division, although its device solutions (DS) unit, which includes the semiconductor segment, is believed to have accounted for a dominant share.

Samsung Electronics has been pushing to expand the supply of sixth-generation high bandwidth memory, or HBM4, this year, targeting strong demand for AI infrastructure.

Analysts believe the DS arm may have posted an operating profit of around 50 trillion won in the first quarter, more than tripling from 16.4 trillion won in the previous quarter.

Samsung Electronics' device experience (DX) arm, which covers mobile and TV businesses, on the other hand, is expected to have faced burdens from rising production costs, according to the analysts.

In detail, the tech giant's mobile business is estimated to have posted an operating profit of around 2 trillion won in the first quarter, down from 4.3 trillion won over the same period last year.

For the remainder of 2026, analysts said Samsung Electronics is expected to maintain growth momentum, with Korea Investment & Securities Co. suggesting an annual operating profit of 302 trillion won, up 50 percent from the previous outlook of 202 trillion won.

"With (Samsung Electronics) expecting long-term contracts with major hyperscale clients, such robust earnings are expected to continue on a mid- to long-term basis," Chae Min-sook, an analyst at Korea Investment & Securities, said in a report.

KB Securities Co. projected an annual operating profit of 327 trillion won, up 49 percent from its previous forecast, noting Samsung Electronics' earnings are expected to accelerate amid the AI boom.

"With global data center operators absorbing 60 percent of Samsung's shipments of DRAM and NAND products, the expansion of investment in AI infrastructure is driving memory demand," Kim Dong-won, an analyst at KB Securities, said in a report.

Samsung Electronics will release its final earnings report later this month.

- IANS

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Reader Comments

P
Priya S
Wow, 57 trillion won! That's mind-boggling. Their mobile profits are down though, which makes sense. Everyone is holding onto phones longer. The future is clearly in AI chips. Makes me wonder when we'll see a major Indian company making headlines like this in hardware.
R
Rohit P
Great for Samsung shareholders, but as a consumer, I'm more concerned about the rising costs mentioned for their mobile division. Does this mean even more expensive Galaxy phones next year? Hope the competition from Chinese and Indian brands keeps them in check.
S
Sarah B
The numbers are staggering. It really highlights the divide between the booming AI infrastructure sector and the stagnant consumer electronics market. A valuable lesson for global business strategy.
V
Vikram M
While this is impressive, it also shows a heavy reliance on one sector (memory chips for AI). What happens if that demand cools? Their mobile business is already under pressure. Diversification is key, even for giants. Still, a phenomenal quarter, no doubt!
K
Karthik V
This AI boom is creating new tech superpowers. Samsung's success with HBM memory is a case study. Indian IT companies need to move beyond services and into such high-value, proprietary hardware and chip design to capture real value in the AI era.

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