Samsung Electronics Co. Ltd. (OTC:SSNLF) is gaining momentum as surging AI-driven demand boosts earnings outlook while intensifying competition across the memory chip industry.

AI Demand Drives Record Earnings Outlook

Samsung on Tuesday projected January–March operating profit at 57.2 trillion won ($37.8 billion), up more than eightfold from 6.69 trillion won a year earlier, potentially setting a new quarterly record and beating estimates of 42.3 trillion won. The company also expects its first-quarter 2026 revenue to rise nearly 70% year over year to 133 trillion won.

High-Bandwidth Memory Fuels Growth Momentum

The outlook reflects strong momentum in Samsung's memory chip business, particularly in high-bandwidth memory used for AI computing, where surging demand has led to shortages and sharp price increases, CNBC reported on Monday.

Samsung has also strengthened its position in high-bandwidth memory after initially trailing SK Hynix, with its Device Solutions unit contributing 39% of revenue and 57% of operating profit in 2025.

Tight Supply And Rising Prices Support Outlook

Counterpoint Research's MS Hwang told CNBC on Monday that the rising memory prices are likely to continue into the second quarter, with tight supply persisting.

Geopolitical Risks Pose Potential Headwinds

Samsung's strong outlook may be threatened by Middle East tensions, which are disrupting supplies of key chipmaking materials like helium. A prolonged conflict could significantly impact production and profits, while a quick resolution would limit the damage, Hwang said.

Image via Shutterstock