South Korean tech giant Samsung Electronics has projected a record-breaking first-quarter profit of 57.2 trillion won (approximately US$37.9 billion), marking a staggering 755 per cent increase year-on-year. The forecast, released in a regulatory filing on Tuesday, also revealed an anticipated 68 per cent surge in sales to 133 trillion won for the three months ending March.
The surge is being driven by robust demand for high-performance memory chips, particularly those essential to the artificial intelligence industry. Samsung, alongside SK hynix, has emerged as a critical supplier in this space, with its high-bandwidth memory chips in high demand from tech firms racing to develop advanced AI systems and data centres.
A Samsung spokesperson attributed the milestone to rising revenues and profits in the company’s Device Solutions (DS) division, which focuses on memory. The spokesperson also highlighted strong performance in home appliances and smartphones as contributing factors.
Industry analysts expect Samsung’s momentum to continue. Ryu Hyung-keun of Daishin Securities told AFP that memory chip prices are rising sharply, which will further improve profit margins in the coming months. The boom in AI-related demand is also pushing up the cost of memory chips used in consumer electronics, potentially leading to higher prices for smartphones, laptops, and other devices worldwide.
Samsung’s shares have soared more than 240 per cent over the past year, reflecting investor optimism about its position in the AI-driven semiconductor market. The company has not yet provided detailed earnings breakdowns by division but is expected to release its full first-quarter report by the end of April.
The strong results underscore Samsung’s pivotal role in the global semiconductor supply chain and its ability to capitalise on the AI revolution, setting the stage for what analysts predict could be another record-breaking year.
