Samsung shares jump on forecast of eightfold profit growth

Shares of South Korean technology giant Samsung Electronics rose 4.8% momentarily on April 7 after the company forecast record quarterly profit amid strong demand for chips for artificial intelligence, CNBC wrote. Growth later slowed, with the papers adding 1.7% at the close of trading in South Korea. Since the beginning of the year, they have risen almost 64%.

In Samsung's preliminary performance forecast for the first quarter of 2026, which was released on April 7, the company said it expects:

- Quarterly operating profit of 57.2 trillion South Korean won ($37.8 billion). This is more than eight times higher than the same figure last year. Back then, Samsung estimated its operating profit at 6.69 trillion won ($4.4 billion).

If the forecast comes true, it will be a record quarterly result for the company; almost three times the previous high and exceeding analysts' expectations. They, according to LSEG SmartEstimate, expect to see Samsung's operating profit at 42.3 trillion won ($28 billion) for the current quarter.

- Samsung also expects its total revenue for the first quarter of 2026 to grow nearly 70% year-on-year to 133 trillion Korean won ($88 billion).

Samsung's financial report will be due later in April.

Samsung's positive outlook is likely driven by its memory chip business, CNBC writes, noting primarily strong demand for high-bandwidth memory (HBM) chips used in artificial intelligence computing.

Samsung's Device Solutions division, which makes memory chips, among other things, accounted for 39% of the company's revenue and 57% of its operating profit in 2025.

Demand for HBM chips has surged over the past year, causing a shortage in the memory market and triggering notable price and sales increases at manufacturers including Samsung.

On March 18, Nomura Financial Group raised its target price on Samsung Electronics from 290,000 won to 320,000 won, maintaining a "buy" recommendation. This target implies a nearly 63% increase in the stock relative to the last closing price.

In general, analysts maintain a positive view on the company's securities. According to MarketScreener, the majority of recommendations remain at the level of "buy": 35 analysts out of 37 advise to do so, one expert recommends to hold Samsung securities, and one more - to sell.

This article was AI-translated and verified by a human editor