Samsung shares rise nearly 5% on record-breaking earnings forecast buoyed by AI chip demand

Samsung Electronics experienced a substantial increase in its stock value, climbing as much as 4.8% on Tuesday following the company's announcement of anticipated record quarterly profits. This surge is largely attributed to heightened demand for artificial intelligence chips, although shares later moderated to a 0.52% increase. In its preliminary earnings guidance, Samsung forecasted an impressive operating profit of 57.2 trillion won (approximately $37.8 billion) for the January-March quarter. This figure represents a staggering eightfold increase compared to 6.69 trillion won from the same period last year. If realized, this profit would set a new quarterly record, nearly tripling the previous high and surpassing estimates of 42.3 trillion won from LSEG SmartEstimate, which relies on consistently accurate analyst forecasts. The projected consolidated revenue is also remarkable, expected to rise nearly 70% year-over-year to reach 133 trillion won. This optimistic outlook is primarily driven by the strong performance of Samsung's memory chip division, particularly in high-bandwidth memory chips crucial for AI computing. Notably, the Device Solutions segment, which includes these memory chips, constituted 39% of Samsung's total revenue and 57% of its operating profit in 2025. The demand for high-bandwidth memory chips has surged over the past year, leading to significant shortages in the memory market and prompting sharp price increases for manufacturers like Samsung. Furthermore, this performance underscores Samsung's efforts to bolster its position in the high-bandwidth memory sector, especially after ceding an early advantage to competitor SK Hynix. The company is expected to release its complete earnings report later this month.