Samsung Electronics reported a record-shattering eight-fold leap in quarterly profit, as insatiable demand for artificial intelligence (AI) memory chips outweighed growing concerns over geopolitical instability in the Middle East.
The South Korean technology giant reported a preliminary operating profit of KRW57.2 trillion (approx. US$38 billion) for the quarter ended March 31, according to a regulatory filing. The figure represents a 755% surge from the KRW6.69 trillion recorded a year earlier, obliterating market expectations. Revenue for the period climbed to KRW133 trillion, a 68.1% increase year-over-year.
Credit: Bloomberg
Earnings surprise defies geopolitical risks
According to Bloomberg, the results underscore a massive shift in the semiconductor landscape, where cloud service providers are aggressively ramping up orders for High-Bandwidth Memory (HBM) to power AI data centers. The windfall suggests that the "AI arms race" remains insulated from broader macroeconomic fears, including the impact of the US-Iran conflict on energy costs and hardware spending.
Shares of Samsung, which had slumped from their February peak, rose as much as 4.9% during early morning trading in Seoul on Tuesday. This rally signaled a dismissal of fears that regional conflicts would hurt the durability of spending on energy-guzzling AI hardware.
Credit: Digitimes
New chapter for revenue and profit
The performance marks one of the company's largest earnings surprises on record. As reported by The Korea Herald, its quarterly revenue topped the KRW100 trillion mark for the first time in the company's history. Remarkably, the operating profit for this single quarter alone exceeded Samsung's total full-year earnings of KRW43.6 trillion for the entirety of 2025.
While Samsung did not disclose divisional breakdowns in its preliminary report, The Korea Herald noted that analysts attribute the performance almost entirely to the semiconductor business. Brokerages estimate that the chip division alone generated between KRW37-48 trillion in operating profit, as tight supply across end markets pushed prices up by double-digit rates.
The HBM4 race and future growth
Samsung's recent pivot to high-end memory has been a primary catalyst. According to Bloomberg, the company was the first to commercially ship next-generation HBM4 to customers earlier this year, following years of struggles and qualification delays that had allowed rival SK Hynix to dominate the field.
Further solidifying its position, The Korea Herald reported that Samsung has begun mass production of HBM4 this year. These chips are expected to be integrated into Nvidia's upcoming Vera Rubin AI accelerator platform as Samsung continues to expand shipments to other major tech giants, including Google and AMD.
Under South Korean disclosure regulations, Samsung provided median figures for its guidance today. The company estimated sales to fall between KRW132-134 trillion, with operating profit ranging from KRW57.1-57.3 trillion. A full financial statement, including net income and divisional breakdowns, is scheduled for release on April 30.
Article edited by Jack Wu
