Samsung chip profits surge 49 times on AI memory demand
Samsung's chip business saw profits skyrocket, up 49 times from last year, as everyone rushes to build smarter artificial intelligence technology (AI).
In the first quarter alone, Samsung's chip unit pulled in $36.15 billion in profit, powered by huge demand for advanced memory chips that keep AI data centers running.
Samsung chip sales jump, shortages expected
Chip sales now make up over half of Samsung's total revenue, with a 69% jump year over year. But there's a catch: demand is so high that shortages are expected until at least 2027.
Samsung says it will more than triple its high-bandwidth memory (HBM) chip revenue this year and invest more to keep up.
The company is also locking in multiyear deals with clients to steady supply, though worker strikes and rising transport costs could still shake things up.