Samsung Stock: Profit Surges 750% as AI Chip Demand Hits Record

TLDR

• Samsung Q1 operating profit rose over 750% year-on-year to a record 57.2 trillion won
• Chip division alone contributed 53.7 trillion won — over 90% of total profit
• Samsung has begun mass-producing HBM4 chips for Nvidia’s Vera Rubin platform
• Supply shortage expected to worsen into 2027 as AI data center demand accelerates
• Mobile and display divisions took a hit from rising component costs

Samsung Electronics posted record first-quarter operating profit on Thursday, with earnings climbing more than 750% from a year earlier to 57.2 trillion Korean won (roughly $38.5 billion). Revenue came in at 133.9 trillion won, up 69% year-on-year, beating analyst estimates on both counts.

The numbers were driven almost entirely by one thing: chips.

Samsung’s Device Solutions division — its memory and semiconductor unit — posted 53.7 trillion won in operating profit, up from just 1.1 trillion won in the same quarter last year. That’s a 49-fold jump in a single year, and it accounted for 94% of the company’s total quarterly earnings.

Samsung SDI Co., Ltd., 0L2T.L

A global shortage of memory chips, fueled by explosive AI data center buildout, has pushed prices sharply higher. Samsung has been one of the biggest beneficiaries. The company’s profit margin in its chip division exceeded 70% in Q1, surpassing those of Nvidia and TSMC in the same period, according to Counterpoint Research.

Samsung also said it has signed multi-year binding contracts with customers looking to secure supply — a sign of just how tight the market has become.

HBM4 and the Race With SK Hynix

Samsung confirmed it began mass-production sales of HBM4 chips in February, becoming the first company to commercially ship the sixth-generation high-bandwidth memory. The chips are destined for Nvidia’s next-generation Vera Rubin AI platform.

SK Hynix has been the dominant player in HBM, holding a 57% revenue market share in Q4 2025 according to Counterpoint Research. It sent HBM4 samples to customers in March 2024 and prepared for mass production by September, but has yet to announce commercial shipments.

Samsung said it expects to more than triple its HBM revenue this year compared to 2026.

Supply Crunch Set to Deepen

Samsung’s memory chief Kim Jaejune told analysts on Thursday that demand fulfillment is now at a record low. Customers worried about future shortages are already pulling forward orders for 2027.

The company plans to increase capital expenditure sharply this year to try to keep pace.

Samsung is also watching a potential labor disruption. Unions representing the majority of workers in its chip division are considering a strike over pay. The company said it has set up a dedicated response team to prevent any production stoppage.

On the cost side, rising chip prices that are good for the memory business are hurting other parts of Samsung. Its mobile division saw profit fall 35% in Q1 to 2.8 trillion won, weighed down by higher component costs. The display division also saw profit drop 20% to 400 billion won.

Samsung’s stock rose as much as 1.8% following the earnings release before reversing to close 2.4% lower, with analysts pointing to profit-taking after the stock’s 88% run so far this year.

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