Samsung Electronics is expected to report a sharp surge in quarterly profit, driven by strong demand and rising prices in the memory chip market fueled by artificial intelligence growth.
Analysts project operating profit of around 40.5 trillion won ($26.9 billion) for the January–March period, marking a roughly six-fold increase year over year and approaching a full-year record. Revenue is also expected to rise about 50%, reflecting what the company has described as an “unprecedented supercycle” in memory chips.
The surge is largely attributed to booming demand for DRAM and high-performance memory used in AI data centers, as major technology firms continue investing heavily in artificial intelligence infrastructure.
Despite the strong outlook, investors remain cautious due to external risks. Geopolitical tensions in the Middle East have raised energy costs and could disrupt supply chains, potentially affecting production and future demand. Additionally, recent signs of easing spot prices for memory chips and new efficiency technologies have contributed to volatility in semiconductor stocks.
Samsung’s shares have declined in recent weeks but remain significantly higher for the year, supported by long-term AI investment trends and ongoing supply shortages in the memory market.
While the chip division is expected to drive most of the profits, other segments such as smartphones and display panels are likely to face pressure from higher component costs and intense competition.
