SEOUL, April 3 - Samsung Electronics is set to report a record quarterly profit of 40.5 trillion won ($26.9 billion), marking a six-fold increase in operating income for Q1.
The surge stems from an 'unprecedented supercycle' in memory chips fueled by artificial intelligence demand. Analysts project revenues up 50% year-over-year.
Despite global tensions in the Middle East, which are driving energy costs and disrupting supply chains, Samsung’s shares have risen 50% this year. Still, recent market volatility and a selloff in memory chip stocks have seen its stock lose 14% since February 28.
Experts remain optimistic, citing continued strong demand and a persistent shortage of memory chips. Market forecasts show DRAM prices to rise further in Q2.
Samsung’s other divisions face challenges. Contract chip manufacturing is expected to remain unprofitable, while smartphone and display units may see profits drop by half due to rising costs and competition.
The company is also dealing with labor union disputes over bonuses and possible strikes in May.