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A blockbuster quarter for Samsung, driven almost entirely by surging demand for AI chips.
The numbers
- Revenue at 133.9 trillion
- Profit up 750% YoY, hitting a new record
- Revenue up nearly 70% YoY
What drove the numbers: the chip business, which contributed over 90% of total profits. Memory chip sales alone surged 225% year-on-year, powered by strong demand from AI data centres that rely heavily on high-bandwidth memory (HBM).
At the same time, supply remains tight, pushing up prices and expanding margins. What’s more telling is that big tech and AI companies are already locking in demand years in advance.
Chipmakers are emerging as the biggest winners of this cycle, benefiting from strong demand and limited supply. However, this also creates a ripple effect, as higher chip prices could start putting pressure on consumer-facing businesses like smartphones and appliances.
