Samsung profit surges over eight-fold to beat estimates as AI boom fuels memory chip crunch
The chipmaker said AI server demand and higher chip prices lifted operating profit more than 750% and pushed revenue to a record.
- On Thursday, Samsung Electronics reported record quarterly operating profit of 57.2 trillion won, a rise of more than 750% from last year, with revenue reaching 133.9 trillion won, about 70% higher year-over-year.
- Surging demand for artificial intelligence servers and constrained memory supply fueled the record earnings. Samsung addressed high-value-added AI demand despite limited supply, with industry-wide memory price increases contributing to performance.
- Expansion into high-bandwidth memory, or HBM, served as a key driver, as Chipmakers like Nvidia drive demand amid limited availability. This profit level surpasses the previous record of 17.6 trillion won set in 2018.
- As manufacturers prioritize higher-margin AI applications, supply constraints have pushed up memory prices for PCs. Customers may face higher costs for devices due to these shifting production priorities.
- Samsung expects server memory demand to remain strong into the second half of the year as hyperscalers continue to accommodate AI adoption. This signals sustained pressure on memory supply and prices beyond the current quarter.
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57 Articles
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Samsung's memory division posts massive profits for Q1, smartphones still profitable
Samsung Electronics just posted its financial report for the first quarter of this year. The head of the mobile division (MX), TM Roh, is worried that said division might experience its first-ever annual loss. We’ll see what the rest of the year holds, but for Q1 at least Galaxy phones remained in the black. Samsung MX and the Network Businesses division brought in KRW 38.1 trillion in consolidated revenue and made KRW 2.8 trillion in operating …
Company recorded record net profit of $31.7 billion, an increase of 474% over the same period of the previous year
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