Overview
- Samsung, which on Tuesday issued preliminary guidance, projected 57.2 trillion won in operating profit on 133 trillion won in revenue, far above forecasts and briefly lifting its shares by up to 4.8%.
- The jump stems from AI data center demand that squeezed memory supply and led DRAM prices to roughly double during the first quarter.
- Researchers now expect contract DRAM prices to rise by more than 50% in the current quarter, while a South Korean report says Samsung raised DRAM prices by about 30% for Q2.
- Analysts estimate the semiconductor Device Solutions unit generated the vast majority of profit, though Samsung did not provide a divisional breakdown in its guidance.
- Risks flagged by industry sources include potential disruptions to helium and higher energy costs from Middle East tensions, plus a recent softening in spot DRAM prices that suggests end users are straining to keep up.