Samsung Electronics (005930.KS), the world's largest memory chipmaker, shattered its all-time quarterly profit record with operating profit exceeding 57 trillion won in the first quarter of this year. Brokerages have uniformly raised their target prices in response.
According to preliminary earnings for the first quarter of 2026 disclosed by Samsung Electronics on the 7th, revenue came in at 133 trillion won and operating profit at 57.2 trillion won ($41.8 billion). Revenue surged 68% year-on-year, while operating profit soared 755%.
In just a single quarter, the company exceeded its full-year operating profit for last year (43 trillion won) by more than 10 trillion won. The figure is roughly three times the previous quarterly record of 20 trillion won set in the fourth quarter of last year.
A sharp rally in memory chip prices is cited as the key driver behind the blowout results. Explosive demand for artificial intelligence (AI) data centers sent average selling prices (ASPs) for both DRAM and NAND soaring.
"DRAM ASPs are estimated to have risen 90% quarter-on-quarter, and NAND ASPs 81%," said Kim Young-gun, an analyst at Mirae Asset Securities (006800.KS). "These figures far exceed initial expectations."
Brokerages expect the upswing to continue throughout the year. Kim Sun-woo and Woo Seo-hyun, analysts at Meritz Securities, said, "The memory cycle has only reached the midpoint," adding, "We expect the period when rising selling prices and expanding shipment volumes overlap to fall between the fourth quarter of this year and the second quarter of next year." Mirae Asset Securities forecast memory chip prices will rise an additional 20% in the second quarter compared to the first.
Full-year operating profit estimates have also been sharply revised upward. According to financial data provider FnGuide, the consensus estimate for Samsung Electronics' annual operating profit stood at 227.3165 trillion won as of the 6th. On the same day, KB Securities projected 327 trillion won, Daishin Securities 307 trillion won, Mirae Asset Securities 304 trillion won, DS Investment & Securities 299 trillion won, and Sangsangin Securities 273 trillion won.
Target prices were raised across the board. KB Securities set the highest target at 360,000 won. Kim Dong-won, head of research at KB Securities, said, "Samsung Electronics will achieve operating profit of 327 trillion won in 2026 and 488 trillion won in 2027, leaping to become the world's No. 1 company by operating profit." He added, "Its current market capitalization is only 19% of Nvidia's, making its valuation highly attractive."
DS Investment & Securities followed with a target of 300,000 won, Shinhan Investment Corp. at 270,000 won, Heungkuk Securities at 260,000 won, and Sangsangin Securities at 250,000 won.