Samsung Electronics has reported record quarterly profits, driven by soaring demand for memory chips used in artificial intelligence. The South Korean tech giant’s consolidated revenue reached 93.8 trillion won (US$65.5 billion) in the quarter to December 2025, a 9% increase from the previous quarter. Operating profit also hit an all-time high of 20.1 trillion won.
The company’s success is attributed to the global frenzy to build AI data centers and develop the fast-evolving technology, which has led to a surge in orders for advanced high-bandwidth memory microchips. This trend is also driving up prices for less advanced chips used in consumer electronics, potentially leading to higher prices for phones, laptops, and other devices worldwide.
Samsung’s earnings announcement comes on the heels of a similar report from competitor SK hynix, which saw its operating profit double last year to a record high. The South Korean government has pledged to become one of the top three AI powers, with Samsung and SK hynix among the leading producers of high-performance memory.
The company expects demand for AI and server chips to continue increasing, leading to more opportunities for growth. To meet this demand, Samsung has invested $33.2 billion in chip production facilities and plans to continue spending on advanced manufacturing processes and upgrading existing production lines.
The global chip shortage has led to warnings from major electronics manufacturers and industry analysts that focusing on AI sales will cause higher retail prices for consumer products. US chip firm Micron has announced plans to build a $24 billion plant in Singapore to meet AI-driven demand.
Samsung’s shares have surged 130% over the past six months, part of a global tech rally fueled by optimism over AI. The company is on the cusp of producing next-generation high-bandwidth “HBM4” chips for AI data centers, with American chip giant Nvidia expected to be one of its customers. However, Nvidia has reportedly allocated 70% of its HBM4 demand to SK hynix for 2026.
The development of AI technology is expected to continue driving demand for advanced memory chips, with Samsung and SK hynix well-positioned to benefit from this trend. As the industry continues to evolve, it will be important to monitor the impact of the global chip shortage on consumer prices and the development of new technologies.
