Samsung Electronics is set to report the most profitable quarter in its history, with first-quarter 2026 operating profit expected to surpass 50 trillion Korean won — approximately $33 billion. The figure represents a staggering six-fold increase from the same period last year and nearly matches what the company earned across the entire previous business year combined.
The driving force behind this extraordinary performance is one thing: artificial intelligence. The global AI boom has created insatiable demand for high-bandwidth memory (HBM) chips, the specialized semiconductors that power the data centers training and running large AI models. Samsung, as one of the world's three major memory chip manufacturers alongside SK Hynix and Micron, has been a direct beneficiary of this surge.
The AI Memory Gold Rush
Memory chip prices have been climbing steadily since mid-2025, reversing a brutal downturn that had crushed the industry in 2023 and early 2024. The turnaround has been driven almost entirely by AI workloads. Training a single large language model can require thousands of advanced GPUs, each paired with stacks of HBM chips. As tech companies from Microsoft to Meta to emerging startups race to build AI infrastructure, the demand for these chips has outpaced supply.
Samsung has aggressively expanded its HBM production capacity, investing billions in new fabrication lines and advancing to next-generation HBM3E chips. The company's semiconductor division, which had posted losses as recently as mid-2024, is now its most profitable business segment by a wide margin.
Beyond Memory: A Full Portfolio
While memory chips are the headline story, Samsung's broader chip business has also benefited. The company's foundry division — which manufactures chips designed by other companies — has seen increased orders, partly driven by AI chip designers seeking additional production capacity. Samsung's display business, supplying OLED screens to Apple and other smartphone makers, has also contributed to the strong results.
The company recently announced plans to begin production at its new advanced chip fabrication facility in Taylor, Texas, which will produce cutting-edge 2-nanometer chips. The plant represents a major bet on the future of semiconductor manufacturing in the United States and positions Samsung as a key player in the reshoring of chip production.
What It Means for the Industry
Samsung's record quarter is the latest signal that the AI boom is translating into real, massive revenue for the companies building the physical infrastructure of artificial intelligence. While much of the AI conversation focuses on software models and consumer applications, the hardware layer — chips, servers, and data centers — is where much of the money is flowing.
For Samsung, the results validate a strategy of heavy capital investment during the downturn, when many analysts questioned the wisdom of continuing to spend billions on new factories. Those factories are now running at full capacity, producing some of the most sought-after components in the technology industry.
The company also announced a significant share buyback program, signaling confidence that the current boom has legs. Analysts expect strong results to continue through at least the remainder of 2026, as AI infrastructure buildout shows no signs of slowing down.
