Key Highlights
- Samsung’s preliminary Q1 operating profit reached approximately 57.2 trillion won ($39B), representing an eightfold annual increase and exceeding analyst forecasts.
- Explosive growth in high-bandwidth memory (HBM) and AI data centre semiconductor demand fueled the exceptional performance.
- Samsung Electronics shares climbed over 7% to reach 210,500 won during Wednesday trading.
- SK Hynix experienced a dramatic surge of up to 15% to hit 1,050,000 won, outstripping both Samsung and the overall market.
- Korea Investment & Securities upgraded SK Hynix’s annual operating profit projection by 28% to 216 trillion won, exceeding 2025 results by more than 400%.
Shares of Samsung Electronics (005930) climbed more than 7% to 210,500 won during Wednesday’s session, while SK Hynix (000660) experienced a remarkable surge of as much as 15% to 1,050,000 won following Samsung’s explosive Q1 earnings preview announcement.
The preliminary financial data from Samsung revealed operating profit of approximately 57.2 trillion won ($39 billion) during the first quarter spanning January through March. This represented an eightfold jump compared to the corresponding period in the previous year and significantly exceeded Wall Street analyst projections.
The exceptional performance was powered by constrained supply conditions and escalating prices for high-bandwidth memory semiconductors and related AI data centre hardware. Samsung’s revenue projections additionally indicated approximately 68% growth, highlighting the magnitude of the industry’s recovery following last year’s memory market slump.
Once confirmed during the full earnings release, these figures would establish a new quarterly profit record for Samsung.
SK Hynix, ranking as the globe’s second-largest memory chip manufacturer, did not publish its own first-quarter results on Wednesday. The company’s earnings announcement is scheduled for later this month. However, Samsung’s impressive results proved sufficient to propel SK Hynix stock substantially higher, as market participants anticipated comparable positive trends in its upcoming report.
SK Hynix shares reached a peak of 1,050,000 won, representing a 15% daily increase — surpassing Samsung’s 8.7% advance and the wider KOSPI index, which climbed approximately 7%.
Brokerage Forecasts Revised Upward
Korea Investment & Securities responded swiftly to the announcement. The brokerage elevated its annual operating profit projection for SK Hynix by 28%, now anticipating 216 trillion won ($146.55 billion). This figure represents more than quadruple SK Hynix’s reported 2025 performance, reflecting more robust-than-anticipated pricing gains across both DRAM and NAND chip categories.
The revision illustrates how dramatically market outlook has transformed within the memory semiconductor sector. Previous worries regarding excess supply have been replaced by an environment characterized by rising chip prices, limited supply availability, and persistent demand from artificial intelligence infrastructure initiatives.
Both Samsung and SK Hynix are capitalizing on the identical fundamental catalyst: the accelerated expansion of AI data centres by leading technology corporations, which necessitates substantial quantities of high-bandwidth memory and sophisticated logic semiconductors.
HBM Emerges as Critical Focus
High-bandwidth memory has emerged as the crucial competitive arena within the AI chip industry. HBM technology is utilized in AI accelerators — such as those manufactured by Nvidia — and production capacity has failed to match the dramatic surge in purchase orders since the final months of 2023.
Samsung’s first-quarter performance indicates the company has secured substantial progress in this segment. The corporation had previously encountered scrutiny regarding its HBM production yields, but achieving record quarterly profitability demonstrates improved operational performance.
SK Hynix has maintained a dominant position in HBM technology and is broadly recognized as Nvidia’s principal supplier. Wednesday’s stock performance reflected market confidence that its forthcoming Q1 disclosure will reveal comparable strength.
The KOSPI index’s 7% advance during the trading session also demonstrated that the earnings surprise elevated overall market confidence throughout South Korea, extending beyond just the two semiconductor manufacturers directly affected.
SK Hynix is anticipated to announce its January-March financial results during the latter portion of April.
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