Samsung shares rise nearly 5% as profit seen 8-fold on AI chip boom

Samsung Electronics projected a record first-quarter operating profit driven by booming demand for AI-focused memory chips, a surprise that pushed the stock up nearly 5% in early trading. The company's preliminary guidance signalled a sharp rebound in profitability as data‑centre orders tightened supply and supported higher prices for DRAM and related memory products.

According to the guidance, Samsung expects operating profit for January–March to reach 57.2 trillion won, well above the LSEG SmartEstimate of 40.6 trillion won and roughly eight times the 6.69 trillion won posted a year earlier. Company observers point to constrained supply for high‑end memory, especially high‑bandwidth memory used in AI accelerators, as a key driver of the margin recovery.

Markets reacted quickly to the news: shares rose about 4.6% to around 202,000 won, outperforming the broader market as investors priced in stronger chip profitability. The rally reflects expectations that tight inventory and sustained data‑centre investment will keep memory contract prices elevated, benefiting major manufacturers that can allocate capacity to high‑value products.

The development underscores a broader shift in the semiconductor landscape toward AI infrastructure, where demand for HBM and server‑grade DRAM has altered traditional product mixes and pricing dynamics. Competitive positions are shifting as companies that secured HBM supply contracts gained an advantage; meanwhile, supply bottlenecks in conventional memory segments have pushed up average selling prices for producers able to meet server demand.

Analysts say the upside for Samsung is significant if memory prices remain strong, but they warn that sustainability depends on factors including capacity expansion, contractual wins for HBM, potential export controls and broader macro/geopolitical risks that could affect demand or supply chains. Upcoming detailed quarterly results and segment disclosures will be key to assessing whether the company can maintain this earnings momentum.