Shares of Samsung Electronics rose as a lot as 4.8% on Tuesday after the South Korean expertise large forecast report quarterly revenue amid sturdy demand for synthetic intelligence chips. Shares later pared features to shut 1.76% larger%.
In its preliminary earnings steering, Samsung projected its working revenue for the January-March quarter to succeed in 57.2 trillion received ($37.8 billion), up greater than eightfold from simply 6.69 trillion received a yr in the past.
That revenue, if it involves fruition, would signify a quarterly report — practically 3 times the earlier excessive — and would exceed estimates of 42.3 trillion received from LSEG SmartEstimate, which is weighted towards forecasts from analysts who’re extra persistently correct.
In the meantime, the corporate’s estimated consolidated income was projected to surge practically 70% from a yr in the past to 133 trillion Korean received.
“Samsung Electronics’ first-quarter income and working revenue have reached a scale that rivals international Massive Tech friends,” MS Hwang, Analysis Analyst at Counterpoint Analysis, informed CNBC.
Samsung’s upbeat steering was doubtless pushed by its reminiscence chip enterprise, notably demand for high-bandwidth reminiscence chips utilized in AI computing.
Demand for high-bandwidth reminiscence chips has change into so explosive over the previous yr that it has triggered shortages throughout the reminiscence market, driving large worth and quantity spikes for reminiscence makers like Samsung.
Based on Counterpoint’s Hwang, commodity reminiscence costs are projected to proceed surging by greater than 50% within the second quarter, with supply-tightness unlikely to ease quickly.
The outcomes additionally mirror that Samsung has been strengthening its place in high-bandwidth reminiscence chips after giving up an early result in its South Korean rival SK Hynix.
Samsung’s Machine Options division, which incorporates reminiscence chips, accounted for 39% of Samsung’s revenues and 57% of its working earnings in 2025.
The corporate is anticipated to report full earnings later this month. Regardless of Samsung’s upbeat projections, the agency may nonetheless face some headwinds this yr from the continuing battle within the Center East.
The U.S.-Israel conflict towards Iran has disrupted shipments of supplies important to semiconductor manufacturing, together with helium, elevating the danger of producing disruptions for corporations equivalent to Samsung and SK Hynix.
“If the Center East battle ends shortly, it is not going to considerably influence earnings. Nevertheless, if it persists for a number of months or longer, it is going to result in extreme penalties,” Hwang mentioned.
