Samsung Electronics reported on Tuesday that it expects a dramatic improvement in first-quarter operating profit, estimating roughly 57.2 trillion won for the January-March period. That figure represents a more than eightfold increase from the 6.69 trillion won the company recorded in the same quarter a year earlier.
The company also projected first-quarter revenue of about 133 trillion won, up from 79.14 trillion won in the year-ago period. Samsung attributed the stronger outlook to a solid rebound in its memory-chip business, where demand for high-bandwidth memory - and other semiconductors tied to artificial intelligence workloads - has accelerated.
Executives pointed to tightening supply and rising prices in the memory market as factors supporting the recovery, noting that major technology firms are stepping up investments in data-center and AI infrastructure. As the world’s largest memory-chip manufacturer, Samsung has been positioned to benefit from this shift in demand toward AI-capable components.
The company’s guidance also marks a sizable improvement from the previous quarter. In the fourth quarter, Samsung reported operating profit of 20.07 trillion won on revenue of 93.84 trillion won. The jump in the outlook for the current quarter underscores the pace of recovery the company is seeing within its semiconductor segment.
Samsung did not provide a divisional breakdown in the preliminary guidance and said it will publish full earnings results later this month.
Sector implications
- Semiconductor industry - Memory-chip makers and suppliers are likely to see demand and pricing effects tied to AI-driven purchases.
- Data-center and AI infrastructure - Increased capital spending by large technology firms on data centers and AI systems is a key demand driver referenced by Samsung.
- Hardware supply chains - Tighter supply in memory markets and rising prices are central elements of the company’s improved outlook.
Looking ahead - Samsung’s full quarterly report, due later this month, will provide a divisional breakdown and confirm whether preliminary guidance aligns with final results.