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TechAI Desk•3 views

Samsung Shares Rise 5% on Record AI Chip Earnings Forecast

Samsung Electronics' shares increased by 4.8% following a preliminary earnings report forecasting a record operating profit of 57.2 trillion won for Q1 2025, an eightfold rise from the previous year. This exceeds analyst estimates of 42.3 trillion won. Revenue is expected to grow nearly 70% to 133 trillion won, primarily due to high demand for AI-related high-bandwidth memory chips. The memory market has experienced shortages and price spikes, benefiting Samsung as it improves its competitive stance against SK Hynix. Full earnings will be disclosed later this month.

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Samsung Shares Rise 5% on Record AI Chip Earnings Forecast

Samsung Electronics' shares rose nearly 5% on Tuesday after the company announced a preliminary earnings forecast projecting a record quarterly operating profit, buoyed by strong demand for AI chips.

Record-Breaking Profit Forecast

  • Operating profit for January-March 2025 is projected at 57.2 trillion won ($37.8 billion), up more than eightfold from 6.69 trillion won a year ago.
  • This would be a quarterly record, nearly three times the previous high, and surpasses market estimates of 42.3 trillion won from LSEG SmartEstimate.

Revenue Surge

  • Consolidated revenue is estimated to increase nearly 70% year-over-year to 133 trillion Korean won.
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AI Chip Demand Drives Growth

  • The upbeat guidance is largely attributed to the memory chip business, particularly high-bandwidth memory (HBM) chips used in AI computing.
  • The Device Solutions division, which includes memory chips, contributed 39% of revenues and 57% of operating profits in 2025.
  • Explosive demand for HBM chips has caused global shortages, driving significant price and volume increases for memory manufacturers like Samsung.

Competitive Landscape

  • Samsung has been strengthening its HBM position after temporarily ceding an early lead to South Korean rival SK Hynix.

Upcoming Full Report

  • The company is scheduled to release complete earnings later this month.
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