Samsung Electronics’ chip business saw profits soar more than fourfold, surpassing expectations and signaling a strong demand for memory chips driven by the surge in artificial intelligence (AI) spending.

The South Korean company plans to expand sales of AI-related chips and is expected to begin delivering its next-generation high-bandwidth memory chips (HBM4) to Nvidia starting in the first quarter.

Samsung’s semiconductor division reported operating profit of 16.4 trillion Korean won (approximately $11.4 billion) for the fourth quarter of 2025, exceeding analysts' average estimate of 10.85 trillion Korean won. The company’s overall net profit was 19.29 trillion Korean won, above the anticipated 15.1 trillion won.

Samsung also announced plans to repurchase shares worth 3.57 trillion Korean won. Its stock price has more than doubled in 2025, and it surged by about 35% in January, reflecting market expectations of significant growth in the company’s performance this year as memory chip prices have risen faster than expected. This growth also highlights the rapidly changing landscape of the entire industry, as major players invest billions of dollars into AI infrastructure.