Samsung Shatters Records With AI Memory Boom

Samsung Electronics forecast a first-quarter operating profit of 57.2 trillion won ($37.9 billion), more than eight times its year-ago figure and triple its previous record set just three months earlier. Surging demand for memory chips powering AI workloads drove the results, with analysts attributing 95% of profit to the chip division. Revenue is expected to rise 68% year-over-year to 133 trillion won. Despite the record results, headwinds loom. Rising energy costs from the US-Iran war, potential supply chain disruptions, and signs of softening spot DRAM prices raise concerns about a peak in memory price growth. Samsung's smartphone margins may also compress in Q2 as low-cost component inventory runs dry.