Samsung forecasts record first-quarter profit as AI chip demand rises

In short: Samsung says it expects record operating profit in the first quarter, driven by strong demand for memory chips used to run AI.

What happened

Samsung Electronics forecast that its operating profit rose more than eightfold in the first three months of the year. Operating profit is the money a company makes from its main business after paying normal costs like wages and materials.

Samsung estimated first-quarter operating profit at 57.2 trillion won, about $38bn. That is higher than the company’s full-year operating profit for 2025, which it reported as 43.6 trillion won. A year earlier, Samsung reported 6.7 trillion won in quarterly operating profit.

The company pointed to a boom in memory chips, which are a key part inside servers used in data centers (large buildings full of computers) that power AI services. Samsung’s sales were projected to rise 68% to 133 trillion won, and the profit forecast was higher than the 40.5 trillion won expected by analysts surveyed by LSEG.

Samsung’s shares rose about 5% on Tuesday morning after the update. The stock is still up nearly 70% this year, even though it has fallen about 6% since the Middle East war began in late February.

Why it matters

AI tools need huge amounts of computing power, and memory chips are like the short-term “workbench” where computers keep data they are using right now. When big tech companies spend more on AI systems and data centers, chipmakers like Samsung can see profits rise quickly. Some analysts said the war has increased energy costs for data centers, but so far chip production and prices have held up, and Samsung is also watching for possible raw material issues like helium supply.

Source: Financial Times