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AI Chip Demand Powers Huge Profit Jump
Samsung Electronics announced a remarkable eightfold jump in quarterly profit, far exceeding analyst expectations. The surge highlights the booming demand for artificial intelligence memory chips. The company's operating profit reached 57.2 trillion won ($37.9 billion) in the March quarter, with revenue climbing to 133 trillion won.
This significant profit growth was driven by a surge in customer orders for high-bandwidth memory (HBM) and other specialized chips crucial for AI data centers. Cloud service providers are at the forefront of these orders, aiming to expand their AI infrastructure.
Key Player in AI Memory Race
Samsung, along with rivals SK Hynix and Micron Technology, holds a dominant position in the global memory market. All three have increasingly focused production on HBM, a key component for AI accelerators from companies like Nvidia Corp. This shift directly supports the rapidly growing AI sector.
This global demand trend is reflected in South Korea's semiconductor exports, which saw a remarkable 151.4% surge in March, highlighting the critical importance of memory chips.
Continued AI Growth Expected
Looking ahead, analysts are optimistic about Samsung's prospects. Citigroup analysts, for instance, forecast sustained high demand for AI inference, which they expect to support DRAM average selling prices. They project Samsung's annual operational profit could reach $206 billion by 2026.
Samsung is also at the forefront of next-generation memory technology, having begun shipments of HBM4 and HBM4E chips earlier this year. The company has secured partnerships with major players including Nvidia, Groq, and Advanced Micro Devices Inc. (AMD), reinforcing its leading position in the high-performance AI chip market.