Tech giant Samsung Electronics on Tuesday estimated its first-quarter profit had soared 755 per cent annually to a record high of 57.2 trillion won (US$37.9 billion), driven by strong sales of chips crucial for AI.
The South Korean firm also said in a regulatory filing that its sales were expected to reach 133 trillion won in the three months to the end of March, a 68 per cent increase compared to the same period last year.
Samsung has emerged as a key player — along with fellow South Korean firm SK hynix — in the supply of high-performing chips in high demand from companies racing to keep up with the fast-evolving AI industry.
“Samsung Electronics achieved its highest-ever results, driven by rising revenue and profits in its memory-focused Device Solutions (DS) division,” said a Samsung spokesperson.
He added that the firm’s competitiveness in home appliances and smartphones has helped boost its earnings.
With growing demand for memory chips, Samsung is expected to see “even better figures” in the months ahead, analyst Ryu Hyung-keun of Daishin Securities told AFP.
“As we are seeing a surge in memory chip prices, its profit margins will improve further for the remainder of the year,” he said.
High-bandwidth memory, a type of chip that Samsung manufactures and uses in AI accelerators and data centres, has seen strong orders from major technology firms, helping lift memory prices and support a recovery in the semiconductor cycle.
That is also pushing up the cost of less flashy chips used in consumer electronics — threatening higher prices for phones, laptops, and other devices worldwide.
Riding the AI boom, Samsung’s shares have risen more than 240 per cent over the past year.
Samsung did not provide earnings breakdowns from its separate divisions, such as the chip and mobile divisions.
It will disclose its final quarterly earnings report at the end of April.