Key Highlights
- Samsung’s preliminary Q1 operating profit reached approximately 57.2 trillion won ($39B), representing an eightfold increase year-over-year and surpassing analyst forecasts.
- High-bandwidth memory (HBM) and AI data centre chip demand powered the exceptional performance.
- Samsung shares climbed more than 7% to reach 210,500 won during Wednesday’s trading session.
- SK Hynix experienced a dramatic surge of up to 15%, touching 1,050,000 won and outpacing both Samsung and the wider market.
- Korea Investment & Securities revised its SK Hynix annual operating profit projection upward by 28% to 216 trillion won, representing over four times the 2025 result.
Shares of Samsung Electronics (005930) climbed more than 7% to 210,500 won during Wednesday’s session, while SK Hynix (000660) jumped as much as 15% to reach 1,050,000 won following Samsung’s impressive preliminary earnings announcement for the first quarter.
The preliminary financial data from Samsung revealed an operating profit of approximately 57.2 trillion won ($39 billion) during the January-March period. This figure represents an eightfold jump compared to the corresponding quarter from the previous year and substantially exceeded analyst consensus estimates.
The robust performance stemmed from constrained supply conditions and rising prices for high-bandwidth memory chips along with other components used in AI data centres. Samsung’s revenue projections indicated approximately 68% growth, highlighting the dramatic recovery the sector has experienced following last year’s memory market slump.
Should these figures be confirmed in the complete earnings release, Samsung would achieve its highest quarterly profit on record.
SK Hynix, which holds the position as the world’s second-largest memory chip manufacturer, did not publish its Q1 results on Wednesday. The company’s earnings announcement is scheduled for later this month. However, Samsung’s outstanding performance proved sufficient to drive SK Hynix shares significantly higher, as market participants anticipate comparable positive trends will appear in its upcoming report.
SK Hynix stock reached a peak of 1,050,000 won during the session, representing a 15% daily advance — exceeding Samsung’s 8.7% increase and the broader KOSPI index, which rose approximately 7%.
Analyst Forecasts Receive Substantial Upgrades
Korea Investment & Securities responded swiftly to the announcement. The brokerage firm increased its full-year operating profit projection for SK Hynix by 28%, establishing a new forecast of 216 trillion won ($146.55 billion). This estimate represents more than quadruple what SK Hynix delivered in 2025, reflecting more robust price appreciation in both DRAM and NAND chip categories than previously anticipated.
The revised outlook demonstrates how rapidly market perception has transformed within the memory sector. Previous worries about excess supply have been replaced by a phase characterized by rising chip prices, tight supply conditions, and persistent demand from AI infrastructure initiatives.
Both Samsung and SK Hynix capitalize on the same fundamental catalyst: the accelerated expansion of AI data centres by leading technology corporations, which necessitates substantial quantities of high-bandwidth memory and sophisticated logic chips.
High-Bandwidth Memory Drives Market Competition
High-bandwidth memory has emerged as the critical competitive arena in the AI chip marketplace. HBM serves as an essential component in AI accelerators — including those manufactured by Nvidia — and production capacity has faced difficulty meeting the steep rise in orders since the end of 2023.
Samsung’s Q1 performance indicates the company has secured substantial progress in this market segment. The corporation had faced scrutiny regarding its HBM production yields, yet a record quarterly profit demonstrates improved operational performance.
SK Hynix maintains a commanding position in the HBM market and is broadly recognized as the principal supplier to Nvidia. Wednesday’s stock movement reflected investor confidence that its forthcoming Q1 results will reveal a comparable narrative.
The KOSPI index’s 7% advance during the session demonstrated that the earnings surprise elevated overall market sentiment throughout South Korea, extending beyond the two chip manufacturers directly involved in the announcement.
SK Hynix is anticipated to publish its January-March financial results during the latter portion of April.
