The company anticipates further earnings growth in the second quarter, citing ongoing investment in AI infrastructure that is expected to elevate memory chip prices.
The leading global memory chipmaker reported an operating profit of 57.2 trillion won ($38.43 billion) for the January-to-March period, matching its own forecast of 57.2 trillion won and significantly increasing from 6.69 trillion won in the same period last year.
Revenue for the South Korean giant rose 69% to 133.9 trillion won compared to a year earlier.
The surge in AI data center demand has prompted chipmakers to divert resources towards manufacturing advanced chips for Nvidia’s AI accelerators, limiting the availability of traditional chips and driving up prices.
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Operating profit from Samsung’s chip division, its primary revenue driver, soared to a record 53.7 trillion won in the first quarter, constituting 94% of its overall profit.
Meanwhile, profit from its mobile and network segment fell by 35% to 2.8 trillion won, affected by rising chip prices. Following the earnings report, Samsung Electronics shares increased by 1.3%.
As Asia’s second-most valuable company after Taiwan’s TSMC, Samsung Electronics has seen its shares jump 88% this year, outpacing the broader market’s 59% rise.
(Edited by : Juviraj Anchil)
