Key Highlights
- Samsung forecasted Q1 operating profit of approximately 57.2 trillion won ($39B), representing an eightfold increase year-over-year and exceeding analyst projections.
- Strong performance attributed to explosive growth in high-bandwidth memory (HBM) demand and AI data center semiconductor requirements.
- Samsung shares climbed more than 7% to reach 210,500 won during Wednesday’s trading session.
- SK Hynix stock experienced a dramatic surge of up to 15% to 1,050,000 won, significantly outperforming Samsung and the overall market.
- Korea Investment & Securities increased its SK Hynix annual operating profit forecast by 28% to 216 trillion won, representing more than quadruple the 2025 results.
Shares of Samsung Electronics (005930) climbed more than 7% to 210,500 won during Wednesday’s session, while SK Hynix (000660) experienced an impressive surge of up to 15% to 1,050,000 won following Samsung’s exceptional Q1 preliminary earnings announcement.
The preliminary financial data from Samsung revealed operating profit of approximately 57.2 trillion won ($39 billion) for the first quarter ending in March. This represents an eightfold jump compared to the corresponding period in the previous year and significantly exceeded Wall Street analyst forecasts.
The impressive performance was powered by constrained supply conditions and escalating prices for high-bandwidth memory chips alongside other critical AI data center components. Samsung’s revenue projections also indicated approximately 68% growth, highlighting the dramatic recovery in the sector following last year’s memory market slump.
If validated when complete financial statements are published, this would establish a new record for quarterly profitability at Samsung.
SK Hynix, globally ranked as the second-largest memory semiconductor manufacturer, did not publish its own first-quarter metrics on Wednesday. The company’s financial results are scheduled for release later this month. However, Samsung’s exceptional performance was sufficient to propel SK Hynix shares significantly higher, as market participants anticipate comparable positive trends in its upcoming report.
SK Hynix stock reached a peak of 1,050,000 won during trading, representing a 15% daily increase — substantially exceeding Samsung’s 8.7% advance and the broader KOSPI benchmark, which itself climbed approximately 7%.
Brokerage Firms Upgrade Forecasts
Korea Investment & Securities responded swiftly to the developments. The brokerage increased its full-year operating profit projection for SK Hynix by 28%, establishing a new target of 216 trillion won ($146.55 billion). This revised estimate would represent more than quadruple SK Hynix’s reported 2025 performance, reflecting more robust-than-anticipated pricing momentum in both DRAM and NAND flash memory markets.
This revision illustrates the dramatic transformation in market sentiment within the memory semiconductor sector. Previous apprehensions regarding potential oversupply have been replaced by a new reality characterized by rising chip valuations, supply constraints, and persistent demand stemming from AI infrastructure investments.
Both Samsung and SK Hynix are capitalizing on the identical fundamental catalyst: the accelerated expansion of AI data centers by leading technology corporations, which necessitates substantial quantities of high-bandwidth memory and cutting-edge logic semiconductors.
High-Bandwidth Memory Takes Center Stage
High-bandwidth memory has emerged as the critical competitive arena within the AI semiconductor landscape. HBM technology is essential for AI accelerators — such as those manufactured by Nvidia — and production capacity has failed to match the dramatic surge in customer orders since the final months of 2023.
Samsung’s first-quarter performance indicates the company has achieved substantial progress in this strategic market segment. The electronics giant had previously encountered scrutiny regarding its HBM production yields, but record quarterly profitability suggests significantly improved operational execution.
SK Hynix has maintained a dominant position in the HBM market and is broadly recognized as Nvidia’s principal supplier. Wednesday’s stock price reaction demonstrated investor confidence that its forthcoming Q1 financial disclosure will reveal comparable strength.
The KOSPI index’s 7% advance during the session also demonstrated that Samsung’s earnings surprise elevated overall market confidence across South Korea, extending beyond just the two directly affected chipmakers.
SK Hynix is anticipated to publish its January-through-March financial results during the latter portion of April.
