Global Market | AI boom fuels record earnings surge at Samsung Electronics

Samsung Electronics reported a dramatic surge in first-quarter earnings, driven by soaring memory chip prices amid a global artificial intelligence boom that has tightened supply across the semiconductor industry.

The company’s operating profit jumped eightfold year-on-year to a record 57.2 trillion won ($38.43 billion) for the January–March quarter, in line with its earlier estimate. This compares with 6.69 trillion won reported during the same period last year.

Revenue for the quarter rose sharply by 69% to 133.9 trillion won, reflecting strong demand conditions across key segments. The surge has been largely attributed to the rapid expansion of AI infrastructure, which continues to fuel demand for advanced memory chips.


According to a report by Reuters, the AI data centre boom has prompted chipmakers to shift production capacity toward high-end chips used in AI accelerators, including those supplied to companies like Nvidia. This shift has constrained the supply of conventional memory chips, pushing prices significantly higher.

Samsung’s semiconductor division, its primary profit driver, accounted for the bulk of the gains. Operating profit in the chip business surged to a record 53.7 trillion won in the quarter, contributing roughly 94% of the company’s total earnings.

In contrast, the mobile and networks division faced margin pressure, with operating profit declining 35% to 2.8 trillion won. The report attributed the decline to rising component costs, particularly higher chip prices, which weighed on profitability in the segment.

Looking ahead, Samsung expects earnings momentum to continue into the second quarter, supported by sustained investment in AI infrastructure and firm pricing in the memory market, as per the Reuters report.

Investor sentiment remained positive following the earnings announcement, with Samsung’s shares rising modestly. The stock has delivered strong gains this year, significantly outperforming the broader market. Samsung remains one of Asia’s most valuable companies, ranking just behind TSMC in market capitalization.

The results underscore how the global shift towards AI technologies is reshaping the semiconductor landscape, creating both opportunities and cost pressures across different segments of the industry.