Thursday, April 30, 2026

Samsung’s profit hits a record high amid AI chip boom

Samsung’s profit hits a record high amid AI chip boom

After posting its preliminary earnings for Q1 2026 earlier this month, Samsung Electronics has now released its final results. The company’s revenue and operating profit reached record highs, driven by the ongoing AI boom. Its semiconductor division accounted for more than 93 percent of total profits.

Samsung Electronics’s Q1 2026 revenue rises 43 percent quarter-on-quarter

Samsung reported total revenue of KRW 133.9 trillion (approximately $97.38 billion) for Q1 2026, while operating profit reached KRW 57.2 trillion (approximately $41.60 billion). This represents a 43 percent quarter-on-quarter increase. Both revenue and profit hit record levels, largely due to strong demand for memory chips used in AI and cloud servers by companies such as Amazon, Google, Meta, Microsoft, and OpenAI.

The company’s Device Solutions (DS) division, which handles semiconductor chips including memory and logic, recorded an 86 percent quarter-on-quarter increase in sales. It also benefited from higher memory chip prices. Samsung began shipping HBM4 and SOCAMM2 memory chips to Nvidia, the world’s leading AI chip company. These chips are used in Nvidia’s new Vera Rubin AI accelerator platform.

While Samsung’s smartphone division also posted a profit, it was relatively small compared to the semiconductor business. Samsung MX and Samsung Networks reported revenue of KRW 38.1 trillion (approximately $27.71 billion) and an operating profit of KRW 2.8 trillion (approximately $2.04 billion).

Samsung’s Visual Display (VD) and Digital Appliances (DA) divisions, which sell home appliances, monitors, TVs, and audio products, reported revenue of KRW 14.3 trillion (approximately $10.40 billion) and an operating profit of KRW 0.2 trillion (approximately $145.45 million) in the first quarter of the year.

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