Samsung Electronics has reported a 750 per cent year-on-year surge in operating profit for the first quarter, driven by strong global demand for advanced semiconductor chips powering artificial intelligence systems.
The South Korean tech giant said operating profit reached 57.2 trillion won ($38.4 billion), marking a record quarterly high, while net profit climbed to 47.1 trillion won and revenue hit 133.9 trillion won.
Samsung said its chip division delivered the strongest performance, with its semiconductor business contributing the bulk of earnings as AI-driven demand for high-bandwidth memory chips surged across global markets.
The company’s memory arm benefited from rising orders linked to AI data centres and “accelerators” used by firms competing in the rapidly expanding artificial intelligence industry. It said demand for high-value memory products helped push sales to record levels despite tight supply conditions.
Samsung noted that it expects strong demand to continue into the second quarter as global investment in AI infrastructure accelerates.
Its performance comes alongside rival SK hynix, which also recently reported record profits fueled by similar AI-related chip demand.
Chief Financial Officer Park Soon-cheol said semiconductor production is currently stable despite global geopolitical tensions, including the ongoing Middle East conflict, adding that supply chain risks remain low due to diversified logistics and trading partners.
Following the earnings announcement, South Korea’s benchmark KOSPI index surged to a record high, reflecting strong investor confidence in the country’s tech sector.
Samsung shares have risen sharply over the past year—by around 300 per cent—driven by the global AI boom and expectations of continued growth in semiconductor demand. However, shares dipped slightly in morning trading despite the strong earnings report.
Beyond market performance, the company is also facing domestic labour tensions, with unionised workers planning possible strike action over wage increases and bonus disputes. A coalition of unions representing nearly 90,000 workers has warned of industrial action if talks fail.
Additionally, Samsung is dealing with legal pressure in the United States, where it faces allegations of patent infringement involving foldable smartphone technologies used in its Galaxy series devices.
Despite these challenges, Samsung said it remains focused on maintaining production stability and meeting global demand as the AI-driven semiconductor cycle continues to expand.
