Memory on Fire: Samsung’s AI-Powered Quarter Breaks Records

Samsung Electronics projects that the first quarter of 2026 will be one of the most spectacular in the company's history. Profits and revenues are expected to rise sharply due to exceptionally strong demand for memory used in artificial intelligence and data center infrastructure. As one of the leading suppliers of memory for AI model training and data center construction, the company is fully capitalizing on the AI boom, which, according to forecasts, will translate into record-breaking results.

Key Forecasted Financial Results for Q1 2026

• Operating profit is expected to reach approximately 57.2 trillion won, equivalent to around 38 billion USD, representing more than an eightfold increase compared to Q1 2025, when it stood at 6.69 trillion won

• Revenues are projected at around 133 trillion won, up roughly 70 percent and surpassing 100 trillion won in a single quarter for the first time in company history

• The memory segment, including DRAM, NAND, and HBM, is estimated to account for approximately 40 percent of revenues

The main driver of these spectacular forecasted results is demand for high-bandwidth memory, particularly HBM, which is used in NVIDIA, AMD, and other accelerators powering AI infrastructure. Building data centers and AI models requires enormous memory resources, creating supply constraints and driving up chip prices. Forecasts indicate that memory prices for data centers are likely to continue rising. Samsung has effectively encoded the AI boom into its balance sheet, making memory the primary source of its profits.

Market reaction to the forecasts was immediate, with shares rising in the first hour of trading and maintaining strong momentum. Samsung's quarterly guidance has significantly exceeded analysts’ consensus, which in market terms is referred to as a “super surprise.”

From a market perspective, the forecasted results clearly demonstrate that Samsung is one of the main beneficiaries of the global AI boom. Its DRAM and HBM memory for data centers and AI systems forms the foundation for profit growth. Investors should, however, remain aware of risks related to tensions in regions critical for the supply chain, the possibility of further escalation of conflict in the Persian Gulf, and the prolonged stalemate around the blockade of the Strait of Hormuz.

Samsung Electronics not only reinforces its position as a memory giant, but the forecasted results also show that the company is set to be a key beneficiary of the global AI surge. Strong demand for DRAM and HBM memory used in data centers and AI model training is expected to drive record revenues and profits in the upcoming quarters as well. The company remains an attractive player in the Asian market with exposure to data center infrastructure and AI technology growth, offering solid financial fundamentals while still being exposed to cyclical and geopolitical risks.

Source: xStation5