Samsung Chip Profit Jumps as AI Demand Tightens Supply
The company reported a record operating profit of 57.2 trillion won driven by an AI chip boom. Samsung expects a severe supply shortage to worsen through 2027.
SAMSUNG ELECTRONICS CO LTD reported a 49-fold increase in chip division profit to 53.7 trillion won ($36.15B) for the first quarter. The result driven by AI demand matches the 57.2 trillion won total profit estimate and follows a 69% surge in overall revenue. Investors face a deepening supply shortage through 2027 as Samsung pivots production capacity toward high-end AI accelerators.
### Widening Supply Deficit Through 2027 Samsung memory executive Kim Jaejune told analysts during a conference call on Thursday morning that supply falls far short of customer demand. Based on current orders, the supply-to-demand gap in 2027 will exceed the deficit expected in 2026. Samsung has signed multi-year binding contracts to lock in supplies for clients building AI data centers.
