Samsung Electronics said its first-quarter operating profit jumped more than eight times, with earnings expected to reach about $37.91 billion. This growth comes from strong demand for high-bandwidth memory chips, which has pushed prices and profit margins higher throughout the global semiconductor industry. The company also reported a 68% increase in revenue for the quarter.
These results have direct effects on Micron Technology, Samsung’s main U.S.-listed competitor in high-bandwidth memory. Demand for memory chips is expected to be higher than supply until at least the middle of next year, when more manufacturing capacity should become available. This situation helps Samsung, SK Hynix, and Micron maintain strong pricing and profit margins.
The main driver behind this trend is the growth of artificial intelligence infrastructure. High-bandwidth memory chips are essential for the newest AI accelerators, and all three major memory makers are working to get their next-generation HBM4 chips approved for Nvidia’s upcoming Rubin platform. In February, Samsung said it was the first to mass-produce HBM4 chips. Micron’s CEO has said the company plans to increase its own HBM4 production in the second quarter of 2026. Analysts believe all three companies will eventually qualify, since no single manufacturer can meet all of Rubin’s demand on its own.
Micron shares dropped 0.7% in premarket trading, even though the outlook for the sector is positive. The stock has risen more than five times over the past year, which suggests the market had already expected strong demand for HBM chips. After Samsung’s results, European semiconductor stocks went up, and the wider chip sector also saw early gains.
For traders watching the AI hardware supply chain, Samsung’s strong quarter is clear evidence that the memory chip investment story is still solid. It supports the idea that the HBM supercycle will continue into the second half of 2026.
Featured CoursesRecent news
ServiceNow and Software Stocks Lead Sector Recovery on AI Hopes
Software stocks are making a comeback. ServiceNow jumped 8.8% on Monday, marking its largest one-day gain in over a year. This surge followed BofA Securities reinstating coverage with a Buy rating, which helped restore investor confidence in a sector that faced pressure in 2026 over concerns that AI might replace, not support, enterprise software. Here’s […]
GE Aerospace Stock Rises as AI Cuts Hypersonic Engine Design Time
GE Aerospace is showing investors what artificial intelligence looks like when applied to one of the world’s most technically demanding industries. Shares rose 1.58% Tuesday as the company revealed that researchers at its Niskayuna, New York, facility used an in-house generative AI tool to produce a preliminary hypersonic ramjet engine design, compressing a process that […]
Nvidia Shares Slip 1.1%: Why a 3-Day Losing Streak Could Be Good News
Nvidia is heading into its most anticipated earnings report of the year on the back foot, and that may be exactly what the stock needs. Shares fell 1.1% in premarket trading Tuesday, extending a three-day pullback from last Thursday’s closing high of $235.74. For investors watching closely, a lower entry point ahead of Wednesday’s results […]
Trade with fewer limits
Day trade with fewer limits at fast speed. Buy stocks and ETFs at low fees.