Samsung Electronics posted a first‑quarter profit that eclipsed its entire 2023 earnings, sending the stock near record highs and soothing fears that Google’s new TurboQuant algorithm could curb the AI‑driven memory‑chip boom. The Korean giant described the market as an “unprecedented supercycle,” arguing that demand for high‑bandwidth memory remains far from saturated for the next quarter.

Critics warned that TurboQuant’s ability to compress the key‑value cache could slash memory use by up to sixfold, potentially shrinking revenue for Samsung and rival SK Hynix. Yet academics like Sungkyunkwan professor Kwon Seok‑joon argue the efficiency gain will unlock cheaper, longer‑running AI services, driving total compute demand higher—a modern Jevons paradox. Analysts now expect long‑term contracts to buffer any short‑term volatility in the sector.

Samsung’s co‑CEO Jun Young‑hyun confirmed the firm is shifting to three‑ to five‑year supply deals with major AI providers, reducing reliance on spot pricing. With the algorithm still confined to a research blog and pending validation at the ICLR conference in Brazil, investors can focus on the company’s robust order book rather than speculative demand shocks. Memory demand appears set to stay buoyant for global AI workloads.