Samsung Electronics' Q1 Profit Surges 8-Fold to Record High, Strong AI Demand Expected
Samsung Electronics reported an 8-fold increase in first-quarter operating profit to 57.2 trillion won, a new record high, driven by surging AI demand. The company anticipates further profit growth in Q2, fueled by expanding investments in AI infrastructure and rising memory chip prices.
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- 📰 Published: April 30, 2026 at 10:51
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SEOUL (CNA) -- Samsung Electronics Co. announced today that its first-quarter operating profit surged eightfold to a record high, driven by the artificial intelligence (AI) boom which has caused supply shortages and pushed up chip prices.
According to Reuters, Samsung Electronics expects profits to further increase in the second quarter and stated that its investments in AI infrastructure will continue to expand, thereby boosting memory chip prices.
The world's largest memory chip maker reported an operating profit of 57.2 trillion Korean won (approximately US$38.43 billion, NT$1.2236 trillion) from January to March this year, consistent with its earlier forecast of 57.2 trillion won, and significantly higher than the 6.69 trillion won in the same period last year.
Samsung Electronics' revenue grew by 69% compared to the same period last year, reaching 133.9 trillion Korean won.
The booming development of AI data centers has prompted chip manufacturers to shift production capacity towards advanced chips used in Nvidia's AI accelerators, leading to tight supply and higher prices for traditional chips.
The chip business, Samsung Electronics' main profit engine, saw its first-quarter operating profit grow to a record high of 53.7 trillion Korean won, accounting for 94% of Samsung's total profit. In contrast, Samsung Electronics' mobile and network division saw its profit decline by 35% to 2.8 trillion Korean won due to rising chip prices.
Samsung Electronics' stock price rose by 1.3% after the earnings announcement.
Samsung Electronics is Asia's second-highest valued company by market capitalization, trailing only Taiwan Semiconductor Manufacturing Co. Its stock price has soared by 88% this year, significantly outperforming the broader market's 59% gain. (Compiled by Chang Hsiao-wen) 1150430
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According to Reuters, Samsung Electronics expects profits to further increase in the second quarter and stated that its investments in AI infrastructure will continue to expand, thereby boosting memory chip prices.
The world's largest memory chip maker reported an operating profit of 57.2 trillion Korean won (approximately US$38.43 billion, NT$1.2236 trillion) from January to March this year, consistent with its earlier forecast of 57.2 trillion won, and significantly higher than the 6.69 trillion won in the same period last year.
Samsung Electronics' revenue grew by 69% compared to the same period last year, reaching 133.9 trillion Korean won.
The booming development of AI data centers has prompted chip manufacturers to shift production capacity towards advanced chips used in Nvidia's AI accelerators, leading to tight supply and higher prices for traditional chips.
The chip business, Samsung Electronics' main profit engine, saw its first-quarter operating profit grow to a record high of 53.7 trillion Korean won, accounting for 94% of Samsung's total profit. In contrast, Samsung Electronics' mobile and network division saw its profit decline by 35% to 2.8 trillion Korean won due to rising chip prices.
Samsung Electronics' stock price rose by 1.3% after the earnings announcement.
Samsung Electronics is Asia's second-highest valued company by market capitalization, trailing only Taiwan Semiconductor Manufacturing Co. Its stock price has soared by 88% this year, significantly outperforming the broader market's 59% gain. (Compiled by Chang Hsiao-wen) 1150430
Choose to stand with facts; every sponsorship you provide is a force protecting press freedom.
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The text, images, and videos on this website may not be reproduced, publicly broadcast, publicly transmitted, or utilized without authorization.