Samsung Chip Profits Surge as AI Boom Ignites Memory Market

Deep News
01/29

Samsung Electronics Co., Ltd. reported a more than fourfold increase in its chip business profit, surpassing expectations and signaling a positive trend in memory chip demand fueled by the wave of artificial intelligence (AI) spending. The South Korean tech giant plans to expand sales of AI-related chips and is expected to begin deliveries of its next-generation high-bandwidth memory chip, HBM4, to Nvidia starting in the first quarter. This move represents a significant step in its effort to catch up with competitor SK Hynix in the high-margin product segment, which is crucial for AI accelerators. Samsung's semiconductor division posted an operating profit of 16.4 trillion won ($114 billion) for the fourth quarter, significantly higher than the average analyst forecast of 10.85 trillion won. The company's overall net profit reached 19.29 trillion won, also exceeding the expected 15.1 trillion won. Additionally, Samsung announced it would buy back shares worth 3.57 trillion won. Samsung's stock price more than doubled in 2025 and has surged an additional 35% this month alone, reflecting market expectations for substantial earnings growth this year as memory chip prices rise faster than anticipated. This growth also underscores the rapidly shifting dynamics across the industry, as major tech giants pour hundreds of billions of dollars into AI infrastructure.

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