Samsung Electronics Co., South Korea’s largest company, reported a record-breaking quarterly profit after global demand for AI-powered servers drove memory chip prices sharply higher. The tech giant posted a preliminary operating profit of 20 trillion won ($13.8 billion) for the three months ending December, up 208% from a year earlier, surpassing the average analyst estimate. Revenue also rose 23% to a record 93 trillion won.
The news sent Samsung shares up as much as 2.5% Thursday morning in Seoul, extending a rally that has lifted the stock 20% since the start of the year. Rival memory chip maker SK Hynix Inc. saw its shares climb 6.2%.
The surge reflects a broader trend in the semiconductor industry, where manufacturers are pivoting away from standard chips for consumer electronics and focusing on higher-margin memory for AI data centers. Companies such as Nvidia Corp., which power hyperscale AI operations, are fueling a boom in demand for both DRAM and NAND memory, causing prices to spike amid a tight global supply.
“Hyperscalers and cloud providers are buying a lot of DRAM and they are willing to pay a price premium,” said Sanjeev Rana, head of research at CLSA Securities Korea.
According to Rana, average selling prices of DRAM jumped more than 30% sequentially in the December quarter, while NAND prices rose roughly 20%. He expects strong prices to continue through 2026 and potentially into the first half of 2027. “Even after that, we may not see much correction because demand is just too strong and supply is tight,” he said.
Samsung’s shares have more than doubled in value over 2025 and surged again this month following an upbeat forecast from rival Micron Technology Inc. Analysts have also raised their price targets on Samsung in recent days, reflecting optimism about the company’s prospects.
Memory demand is being driven by emerging applications, including humanoid robots, autonomous vehicles, and consumer devices with AI capabilities, said Jeff Kim, head of research at KB Securities Co.
“It’s too early to talk about demand peak-out,” Kim said. “Investors should buy and hold memory stocks. If the stocks fall after the 20 trillion won earnings figure, it’s an opportunity to buy.”
Samsung plans to release a full financial statement with net income and divisional breakdowns on Jan. 29.
At the recent CES trade show, Samsung executives highlighted the memory chip supply crunch. President Wonjin Lee noted that consumer electronics prices are rising and warned of potential semiconductor shortages.
Market watchers, including Counterpoint Research, project continued price growth for memory. DDR5 — the latest generation of conventional DRAM used in computers and servers — could rise 40% in the current quarter compared with the previous three months, followed by an additional 20% increase in the second quarter.
Samsung’s preliminary 21.5% operating-profit margin for 4Q25 indicates it is benefiting from strong demand across conventional DRAM, high-bandwidth memory (HBM), and NAND chips. Analysts estimate operating margins for DRAM alone may have exceeded 50% in the quarter and could rise further in 1Q26, bolstered by Samsung’s substantial revenue share in conventional DRAM. Its global market leadership in NAND also supports profit growth in 2026.
Samsung has been working to catch up in high-bandwidth memory, which is critical for AI applications. Last year, it delivered HBM4 samples to Nvidia for testing, raising hopes of mass production in the first half of 2026 to support Nvidia’s upcoming Rubin processors. CLSA’s Rana expects Samsung’s total HBM shipments to triple this year as HBM4 enters commercial supply.
The combination of soaring AI-driven demand and tight global supply has positioned Samsung to deliver one of its strongest financial performances in years, with industry watchers closely monitoring how long the memory boom can sustain elevated profits.
