Key Highlights
- Samsung announced preliminary Q1 operating profit of approximately 57.2 trillion won ($39B), representing an eightfold increase year-over-year 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 stock skyrocketed up to 15% to 1,050,000 won, significantly outpacing both Samsung and the wider market indices.
- Korea Investment & Securities upgraded its SK Hynix annual operating profit projection by 28% to 216 trillion won, representing more than quadruple the 2025 performance.
Shares of Samsung Electronics (005930) advanced more than 7% to 210,500 won during Wednesday’s session, while SK Hynix (000660) rocketed as much as 15% to 1,050,000 won following Samsung’s exceptional preliminary Q1 earnings announcement.
The preliminary financial data from Samsung revealed an operating profit of approximately 57.2 trillion won ($39 billion) during the first quarter spanning January through March. This figure represents an eightfold jump compared to the corresponding period in the previous year and substantially exceeded Wall Street consensus estimates.
The exceptional performance was powered by constrained supply conditions and rapidly escalating prices for high-bandwidth memory semiconductors and additional AI data centre hardware. Samsung’s preliminary revenue projections indicated expansion of roughly 68%, highlighting the magnitude of the industry’s recovery following last year’s memory market slump.
If validated in the complete financial disclosure, this performance would establish a new quarterly profit record for Samsung.
SK Hynix, ranked as the globe’s second-largest memory semiconductor manufacturer, did not publish its Q1 performance metrics on Wednesday. The company’s financial results are scheduled for release later this month. However, Samsung’s impressive beat proved sufficient to propel SK Hynix shares dramatically higher, as market participants anticipate comparable favorable trends will materialize in its upcoming report.
SK Hynix equity reached a session peak of 1,050,000 won, representing a 15% intraday advance — substantially exceeding Samsung’s 8.7% appreciation and the benchmark KOSPI index, which itself climbed approximately 7%.
Analysts Boost Forecasts
Korea Investment & Securities responded swiftly to the announcement. The research firm elevated its annual operating profit projection for SK Hynix by 28%, now anticipating 216 trillion won ($146.55 billion). This forecast represents more than quadruple what SK Hynix delivered in 2025, reflecting more robust-than-anticipated price appreciation across both DRAM and NAND memory categories.
The forecast revision illustrates how dramatically market perspective has transformed within the memory semiconductor sector. Previous concerns regarding potential oversupply have been replaced by an environment characterized by rising chip valuations, supply limitations, and persistent demand from AI infrastructure initiatives.
Both Samsung and SK Hynix are capitalizing on identical fundamental catalysts: the accelerating deployment of AI data centres by leading technology corporations, which necessitates substantial quantities of high-bandwidth memory and sophisticated logic semiconductors.
HBM Emerges as Critical Growth Driver
High-bandwidth memory has emerged as the crucial competitive arena within the AI semiconductor landscape. HBM technology is integrated into AI accelerator chips — such as those manufactured by Nvidia — and available supply has failed to match the dramatic surge in purchase orders since the fourth quarter of 2023.
Samsung’s first quarter performance metrics indicate the company has achieved substantial progress in this market segment. The corporation had previously encountered scrutiny regarding its HBM production yields, but a record-setting quarterly profit suggests improved manufacturing execution.
SK Hynix has maintained a commanding position in HBM technology and is broadly recognized as Nvidia’s principal supplier. Wednesday’s stock price reaction demonstrated investor confidence that its forthcoming Q1 disclosure will present a comparable narrative.
The KOSPI index’s 7% appreciation during the trading session also illustrated that the earnings surprise elevated overall market optimism throughout South Korea, extending beyond just the two semiconductor manufacturers directly involved.
SK Hynix is anticipated to announce its January-March financial performance later in April.
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