Samsung Electronics on Tuesday announced a stronger-than-anticipated operating profit for the first quarter of 2025, driven by robust demand for memory chips and solid smartphone sales. The company cited customer stockpiling of semiconductors ahead of potential U.S. tariffs as a key factor behind the performance.
The South Korean tech giant, the world’s largest memory chipmaker, estimated its operating profit for the January–March period at 6.6 trillion won ($4.49 billion), nearly unchanged from 6.61 trillion won a year earlier. The result significantly beat market expectations, with analysts’ consensus forecast from LSEG SmartEstimate predicting a profit of 5.1 trillion won.
Industry analysts attribute the resilience in profits to increased shipments of both conventional memory and AI chips, despite a decline in average chip prices. Customers, concerned about looming U.S. tariffs on semiconductor imports, reportedly accelerated their orders to build inventory.
“While general memory prices dipped, strong demand from customers looking to secure inventory ahead of potential U.S. tariffs helped boost Samsung’s memory chip shipments, supporting overall performance,” said Greg Roh, head of research at Hyundai Motor Securities.
Samsung’s shares rose 2.6% in morning trading, outperforming the benchmark KOSPI index, which gained 1.6%. The company is scheduled to release its detailed earnings report on April 30.
The preliminary earnings come amid leadership changes following the sudden death of co-CEO Han Jong-Hee last month. Meanwhile, geopolitical uncertainty continues to loom over the semiconductor industry. Last week, U.S. President Donald Trump reiterated plans to impose tariffs on chips as part of a broader trade strategy, although semiconductors have so far been exempt.
Samsung’s newly launched Galaxy S25 smartphones, introduced in January, also contributed to the strong quarter. Their upgraded AI features helped boost sales, with many North American customers reportedly advancing their purchases ahead of potential trade disruptions.
However, analysts warn that the second quarter could see a slowdown. Kim Sun-woo, senior analyst at Meritz Securities, said shipments are likely to decline following first-quarter stockpiling. Delays in securing new customers for high-bandwidth memory (HBM) chips may also weigh on performance.
Samsung’s chip division is estimated to have earned around 800 billion won in Q1, about half of what it earned a year earlier. Losses in its contract chip-making (foundry) business—serving clients like Nvidia, Qualcomm, and AMD—likely offset memory chip gains.
The company has also cited U.S. export restrictions on AI chip sales to China, one of its largest markets, as a drag on revenue. Despite this, Samsung is aiming to ramp up chip sales in the second half of the year, with plans to supply advanced HBM3E chips to Nvidia by mid-2025.
Rival chipmaker SK Hynix recently echoed Samsung’s outlook, noting increased early orders but remaining cautious about a sustained recovery. Meanwhile, U.S.-based Micron Technology forecast stronger AI chip demand in the upcoming quarters.
Samsung executives have acknowledged their slow response to the booming AI chip sector but remain optimistic about a rebound driven by global demand for smartphones and data centers.
