Samsung might pocket a six-fold Q1 profit amid the memory chip crisis

The more gentle and sensitive among us might be tempted to sympathize with corporations who have to deal with shockingly expensive memory chip prices. But, as always, some companies will use a crisis to make an absurd amount of money – this is valid for any kind of crisis.

While you and I will pay more for phones, tablets and all kinds of consumer electronics (Samsung's Galaxy S26 already landed a month ago with a $100 higher price tag), those that make memory chips – like Samsung itself – might report record-breaking revenue and profits.

That is, until they have enough raw materials to make such chips and until the global supply chains don't completely break down.

The sixfold increase

There's a new report by Reuters that cites estimated data from dozens of analysts. Driven by the "unprecedented supercycle" for memory chips, which common people cleverly dub "The RAMpocalypse", Samsung Electronics might report a six-fold jump in operating profit for Q1 (the first three months of 2026).

The AI craze is as hot as ever and the outcome for Samsung might be such that the company pockets almost the same amount of money in Q1 as it did for the whole previous business year.

How did it do in 2025?

The RAM craze started in late 2025, but, apparently, there wasn't enough time for Samsung to break its record.

So last year, Samsung reported ~44 trillion won ($29.2 billion), while it's expected that the Q1 2026 profit might be over 40 trillion won.

Ko Yeongmin, ​analyst at Daol Investment & Securities, says that "you couldn't ask for things to be better". Yeah, but I don't have any Samsung stocks, so I definitely can ask for things to be better and for me (and I guess for you, too) it would be better if phones got cheaper and not the other way around.

But there's uncertainty

Even with profits expected to surge, uncertainty is beginning to creep into the outlook. Much of the attention now shifts to how geopolitical tensions, particularly the ongoing conflict in the Middle East, could disrupt Samsung's momentum by increasing energy costs and threatening the supply of key materials needed for chip production.

At the same time, there are early signs that the explosive growth in memory prices may not be entirely stable.

Device makers have already raised prices for smartphones and computers, which is starting to weigh on consumer demand, while new efficiency-focused technologies like Google's TurboQuant are adding pressure by reducing the need for as much memory.

Demand is high

Demand for memory chips continues to outpace supply, and production capacity is not expected to catch up anytime soon, keeping long-term prospects strong. Samsung is also adapting by locking in longer-term contracts with major clients to stabilize demand and reduce exposure to sudden market swings.

Outside of memory, however, the picture is less optimistic. Other divisions, including chip manufacturing services, smartphones and displays, are facing weaker profitability due to rising costs and intense competition, while additional pressure could come from labor disputes at home.