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ByNN Desk
Samsung Forecasts Record-Breaking Q1 Earnings Amid AI Chip Surge
AI-driven demand for data centers is pushing memory chip prices higher, as supply constraints continue to shape the semiconductor market.
A surge in high-bandwidth memory and AI chips is expected to fuel one of Samsung’s strongest quarters in recent years.
Samsung Electronics projected a sharp rise in first-quarter earnings, driven by strong demand for artificial intelligence infrastructure that has tightened chip supply and pushed prices higher. According to its official earnings guidance, the company expected operating profit of approximately 57.2 trillion Korean won for the January–March 2026 period, a more than eightfold increase from 6.7 trillion won a year earlier.
The estimate also exceeds analysts’ expectations of 40.6 trillion won, reflecting stronger-than-expected momentum in its semiconductor business. The growth is linked to rising demand from AI data centers, where increased workloads have strained supply for memory and traditional chips. This has contributed to a sharp increase in prices, with industry estimates indicating that DRAM prices could rise by more than 50% in the current quarter as shortages persist.
Samsung’s semiconductor division is expected to account for the majority of its profits, supported by both higher chip prices and favorable currency movements, as a weaker Korean won boosted overseas earnings. The company has also been narrowing the gap with rival SK Hynix in high-bandwidth memory chips, which are critical for AI workloads, although most of its revenue continues to come from traditional DRAM and NAND products.
Much of this demand is being driven by AI inference workloads, which rely heavily on conventional DRAM and NAND chips rather than only high-end memory such as HBM. This has intensified shortages in widely used components, pushing up prices across the broader memory market. As a result, chipmakers like Samsung are benefiting not just from advanced AI hardware demand but also from rising prices in traditional semiconductor segments.
However, the outlook remains uncertain. Analysts have pointed to rising energy costs, geopolitical tensions in the Middle East, and early signs of demand stabilization as factors that could affect future growth. Spot prices for memory chips have recently shown signs of easing, suggesting the current upcycle may be entering a later phase.
The results reflect a broader shift in the semiconductor industry, where AI-driven demand is reshaping pricing dynamics and supply conditions, even as companies face increasing pressure to sustain growth amid infrastructure and market constraints.
Disclaimer: This article is based on the official press release by Samsung. NervNow has not independently verified the claims.
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