AI Prints Money: Samsung Beats Everyone with Record Profits (+750%!)
Samsung
Samsung has closed the first quarter of 2026 with unprecedented results, largely supported by the growth in demand related to artificial intelligence, particularly from the memory segment. The numbers released by the South Korean company outline a scenario of strong expansion, but also an increasing dependence on the cycle of investments in AI infrastructure.
In the period ending March 31, 2026, Samsung Electronics recorded consolidated revenues of 133.9 trillion won (approximately 90 billion dollars), up both sequentially (+43%) and year-on-year (about +70%). The operating profit reached 57.2 trillion won, marking an increase of over 750% compared to the same quarter of 2025 and exceeding analysts' expectations. This is a record level for both indicators, with quarterly profits surpassing even the entire annual result of 2025 for the company. The growth continues a positive trend already highlighted in the last quarter of last year, consolidating an expansion phase mainly driven by the semiconductor business.
The decisive contribution came from the Device Solutions (DS) division, which includes memory, System LSI, and Foundry. This unit generated 81.7 trillion won in revenues and a remarkable 53.7 trillion in operating profit, accounting for over 90% of the group's overall profits.
The memory segment benefited from the explosion in demand for AI applications in data centers, where solutions like HBM (High Bandwidth Memory) have become essential. The combination of high demand and limited supply has pushed average selling prices higher, directly contributing to profitability. Samsung has also begun mass production of HBM4 and SOCAMM2, intended for next-generation platforms based on advanced architectures for AI. Simultaneously, the development of PCIe Gen6 SSDs continues to meet the needs for high-performance storage, such as for managing KV cache in language models.
Despite these advancements, competition remains intense, particularly with SK Hynix, which maintains a leadership position in the HBM market. However, the technological gap between the two players seems to be narrowing with the new generations of memory.
The outlook for the rest of the year remains strongly tied to the expansion of AI infrastructures. Samsung expects sustained demand for server memory in the second half of 2026, driven by the increasing adoption of AI models and LLM-based services by companies and hyperscalers. An emerging element is represented by agentic AI, which could further accelerate the need for high-performance memory.
Also interesting is the demand-supply dynamic: according to what emerged during the call with analysts, the availability of memory remains significantly lower than demand, with customers placing orders as far ahead as 2027 due to fears of future shortages.
In the System LSI sector, Samsung reported improved results thanks to the expansion of SoC sales, while the Foundry division felt the effects of seasonality, even as it continued to secure new contracts for HPC projects and initiate initiatives in silicon photonics. On the technology front, development of the 1.4 nm process is underway, while the second half of 2026 is expected to see the start of production for the second-generation 2 nm process for mobile devices. Concurrently, efforts aim to expand the customer base beyond AI and HPC, including sectors such as automotive and aerospace.
The Device eXperience (DX) division, which includes smartphones and consumer devices, saw more modest growth (+19% quarter-on-quarter), supported by the launch of new flagship models. However, rising costs—partly linked to memory prices—pose a margin pressure element. The Mobile eXperience (MX) business benefited from a premium product mix, while for the rest of the year, Samsung expects growth driven by flagship and new mid-range models, alongside the development of the foldable range.
In the display segment, Samsung Display showed a decline in small and medium panels due to seasonality and costs, while the demand for OLED panels for gaming monitors remains stable. In televisions and home appliances, the strategy focuses on premium products and integration of AI functionalities.
Despite the extremely positive outlook, some potential risk factors emerge. The increase in memory prices could negatively impact segments like smartphones and home appliances, compressing demand. Additionally, geopolitical uncertainties, given the well-known international tensions, could affect the supply chains of raw materials and energy.