Samsung Electronics Warns of Growing AI Memory Shortage After Reporting Record Profits

Samsung Electronics expects a worsening memory shortage this year as AI demand surges. The company reported record fourth-quarter profits while warning of rising costs.

Insights:
Samsung Electronics Co., Ltd. announced on Thursday that it expects a deepening global shortage of memory products throughout the year as demand for artificial intelligence infrastructure continues to accelerate. The warning from the South Korea KRKRtechnology giant comes even as the company reported a record-breaking fourth-quarter operating profit, driven primarily by the historic performance of its semiconductor division. The race to build AI infrastructure has increased demand for high-bandwidth memory used in AI servers, prompting some chipmakers to divert capacity to these products and squeezing the supply of conventional memory chips.
FILE PHOTO: The logo of Samsung Electronics is seen at the company's store in Seoul, South Korea, April 15, 2025. REUTERS/Kim Hong-Ji/File Photo
FILE PHOTO: The logo of Samsung Electronics is seen at the company's store in Seoul, South Korea, April 15, 2025. REUTERS/Kim Hong-Ji/File Photo
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