Samsung Electronics announced a record-breaking first quarter, with operating profit surging eightfold to 57.2 trillion won ($38.43 billion). This dramatic increase, up from 6.69 trillion won a year ago, was largely driven by robust demand for artificial intelligence chips.
The company's chip business, its primary revenue source, posted a record 53.7 trillion won in operating profit, representing 94% of its total earnings. The global AI boom has created a supply crunch for advanced chips, driving up prices for memory chipmakers like Samsung.
Revenue for the quarter climbed 69% year-on-year to 133.9 trillion won. Samsung expects further earnings improvement in the second quarter, citing continued expansion in AI infrastructure investment. Meanwhile, its mobile and network division saw a 30% profit decline due to rising chip costs.