Samsung forecasts record quarterly profit on AI chip demand surge

Samsung Electronics forecast record first-quarter operating profit that exceeded analyst estimates by a significant margin, as booming demand for AI memory chips drives an anticipated 8-fold increase in earnings. The South Korean semiconductor giant's shares rose nearly 5 percent following the earnings forecast announcement. The surge reflects strengthening demand for high-bandwidth memory (HBM) chips essential for AI training and inference workloads. Samsung is one of the world's largest memory chip manufacturers and has been investing heavily to expand its AI chip manufacturing capabilities. The company competes with SK Hynix and Micron in the high-bandwidth memory segment crucial for Nvidia's AI accelerators. The strong forecast signals continued robust demand for AI infrastructure despite concerns about potential market saturation. Major technology companies have maintained aggressive capital expenditure plans for AI data centers throughout 2026. Samsung's semiconductor division has faced challenges in catching up to rival SK Hynix in the most advanced HBM3E memory technology used in Nvidia's latest-generation AI chips. The earnings beat suggests the company has made progress in securing high-value AI memory orders. The results highlight the bifurcation in chip demand, with AI-related semiconductors showing sustained strength while traditional computing and memory markets remain more subdued.