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 robust demand for high-bandwidth memory (HBM) chips and AI-focused data centre semiconductors.
- Samsung Electronics (005930) shares climbed over 7% to reach 210,500 won during Wednesday trading.
- SK Hynix (000660) stock jumped as high as 15% to 1,050,000 won, significantly outperforming both Samsung and the wider Korean market.
- Korea Investment & Securities boosted its SK Hynix annual operating profit projection by 28% to 216 trillion won, representing more than quadruple the 2025 result.
Shares of Samsung Electronics (005930) climbed more than 7% to 210,500 won during Wednesday’s trading session, while SK Hynix (000660) experienced a dramatic surge of up to 15%, reaching 1,050,000 won, following Samsung’s impressive preliminary Q1 earnings announcement.
The preliminary financial data from Samsung revealed operating profit of approximately 57.2 trillion won ($39 billion) during the first quarter ending in March. This represents an eight-times increase compared to the corresponding quarter last year and significantly exceeded Wall Street’s consensus estimates.
The exceptional performance stemmed from constrained supply chains and escalating prices for high-bandwidth memory semiconductors and other artificial intelligence data centre hardware. Samsung’s revenue projections also indicated approximately 68% growth, highlighting the magnitude of the industry’s recovery following last year’s memory chip slump.
If validated when complete financial statements are published, this would establish a new quarterly profit record for Samsung.
SK Hynix, ranked as the globe’s second-largest memory chip manufacturer, did not publish its own first-quarter results on Wednesday. The company’s earnings report is scheduled for release later this month. However, Samsung’s impressive performance was sufficient to propel SK Hynix stock substantially higher, as market participants anticipate comparable positive trends in its upcoming financial disclosure.
SK Hynix shares reached a peak of 1,050,000 won, marking a 15% daily increase — substantially exceeding Samsung’s 8.7% advance and the broader KOSPI index, which itself climbed approximately 7%.
Wall Street Estimates Revised Upward
Korea Investment & Securities responded swiftly to the announcement. The brokerage increased its annual operating profit forecast for SK Hynix by 28%, now projecting 216 trillion won ($146.55 billion). This figure would exceed SK Hynix’s 2025 reported results by more than four times, reflecting more aggressive-than-anticipated pricing gains across both DRAM and NAND chip categories.
The revision illustrates how dramatically market perception has transformed within the memory semiconductor sector. Previous worries regarding excess inventory have been replaced by an environment characterized by rising chip valuations, limited availability, and sustained demand from artificial intelligence infrastructure initiatives.
Both Samsung and SK Hynix are capitalizing on identical fundamental catalysts: the accelerated expansion of AI-powered data centres by leading technology corporations, which necessitates substantial quantities of high-bandwidth memory modules and cutting-edge logic semiconductors.
High-Bandwidth Memory Leading the Charge
High-bandwidth memory has emerged as the critical competitive arena within the AI semiconductor landscape. HBM technology is essential for AI processing units — such as those manufactured by Nvidia — and production capacity has been unable to match the dramatic surge in purchase orders since the fourth quarter of 2023.
Samsung’s first-quarter performance indicates the company has achieved significant progress in this segment. Although Samsung previously encountered scrutiny regarding its HBM production yields, a record-setting quarterly profit demonstrates improved operational efficiency.
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 reflected investor conviction that its forthcoming Q1 financial results will reveal comparable strength.
The KOSPI index’s 7% appreciation during the trading session also demonstrated that the earnings surprise elevated overall market confidence throughout South Korea, extending well beyond the two semiconductor manufacturers directly affected.
SK Hynix is anticipated to release its first-quarter financial results during the latter portion of April.
