Shares of Samsung Electronics surged as much as 4.8% on Tuesday following the company's preliminary earnings guidance, which projected a record operating profit for the January-March quarter, driven by robust demand for artificial intelligence chips [1]. The stock later pared gains but remained up 0.52% on the day [1]. Samsung expects its operating profit to reach 57.2 trillion won ($37.8 billion), marking an eightfold increase from 6.69 trillion won in the same period last year [1]. This would represent a quarterly record, nearly three times the previous high, and would surpass analyst estimates of 42.3 trillion won from LSEG SmartEstimate [1]. Consolidated revenue is estimated to surge nearly 70% year-over-year to 133 trillion Korean won [1].
The company's upbeat guidance is attributed primarily to its memory chip business, especially high-bandwidth memory chips used in AI computing [1]. Samsung's Device Solutions division, which includes memory chips, accounted for 39% of its revenues and 57% of its operating profits in 2025 [1]. Over the past year, explosive demand for high-bandwidth memory chips has led to shortages and significant price and volume increases for memory makers like Samsung [1].
Samsung has been strengthening its position in high-bandwidth memory chips, regaining ground after previously ceding an early lead to its South Korean rival SK Hynix [1]. The company is expected to release its full earnings report later this month [1].
CONCLUSION
Samsung's preliminary earnings guidance signals a record-breaking quarter, fueled by soaring demand for AI-related memory chips. The market responded positively, with shares rising sharply, underscoring investor confidence in Samsung's strengthened position in the high-bandwidth memory segment. Full earnings details are anticipated later this month.