On Thursday, Samsung Electronics Co. (OTC:SSNLF) delivered its strongest quarterly performance ever as booming demand for artificial intelligence-driven memory and tight global chip supply pushed profits well beyond analyst expectations.
AI Memory Boom Powers Samsung's Historic Earnings Growth
The South Korean tech giant reported first-quarter revenue of 133.9 trillion won ($89.96 billion), surpassing LSEG estimates of 132.69 trillion won, while operating profit reached a record 57.2 trillion won, topping forecasts of 55.28 trillion won.
Operating profit surged more than 750% from a year earlier, exceeding Samsung's entire full-year 2025 profit of 43.6 trillion won, CNBC reported.
Revenue climbed about 70% year over year, marking the company's highest-ever quarterly sales.
Samsung's semiconductor division was the primary driver, generating 53.7 trillion won in operating profit, up sharply from roughly 1 trillion won in the same period last year.
Chip sales soared 225% to 81.7 trillion won, accounting for more than 90% of Samsung's total earnings.
"The Memory Business surpassed its quarterly sales record by addressing high-value-added AI demand despite limited supply availability, with industry-wide memory price increases also a contributing factor," the company said in a statement.
Global Memory Shortages and AI Data Centers Fuel Chip Price Surge
The company benefited from surging demand for advanced memory chips used in AI servers and hyperscale data centers, where supply shortages have significantly raised prices.
Samsung said its memory business achieved record quarterly sales by capitalizing on demand for premium AI products, particularly high-bandwidth memory, or HBM, despite industrywide supply constraints.
HBM chips are critical for AI processors, including those used by companies such as Nvidia Corp (NASDAQ:NVDA), whose expanding AI infrastructure has intensified competition among memory manufacturers.
Samsung Expands HBM4 Push Amid Rivalry With SK Hynix
Samsung is aggressively expanding production of next-generation HBM4 chips to narrow the gap with competitor SK Hynix, which currently leads the HBM market.
While analysts say Samsung has improved significantly in HBM4, SK Hynix remains ahead in market share.
According to data from Benzinga Edge, Samsung ranks in the 77th percentile for Growth, highlighting solid performance across short, medium and long-term metrics.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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