Samsung Electronics shattered expectations today, forecasting record-breaking quarterly earnings that propelled its shares up nearly 5% in Seoul trading. The South Korean giant attributes this surge to explosive demand for AI chips, particularly high-bandwidth memory (HBM) modules essential for advanced computing.

AI Boom Fuels Semiconductor Revival

Investors cheered as Samsung projected operating profit to hit 10.4 trillion won ($7.7 billion) for the first quarter, a staggering 931% jump from last year. This turnaround reverses a string of losses in its chip division, hammered by oversupply in recent months. Now, AI-driven orders from tech titans like Nvidia supercharge production lines, with HBM sales expected to triple amid the global rush for generative AI infrastructure.

Historically, Samsung's memory business navigated volatile cycles, but the past year's AI frenzy marks a pivotal shift. Unlike the 2025 downturn tied to consumer electronics slumps, today's momentum stems from data center expansions and machine learning demands, positioning Samsung as a key player in the AI semiconductor race.