Samsung reported a record quarterly profit of $36.15 billion in Q1 2026, driven by explosive demand for advanced memory chips in AI data centers. The company's memory division saw operating income jump 49% year-over-year to 53.7 trillion won ($36.15 billion), accounting for 94% of total profits. However, Samsung warned that 2027 shortages could worsen as demand outpaces supply, with memory chief Kim Jaejune noting supply gaps will deepen despite multi-year contracts to secure capacity.

The AI data center boom pushed HBM4 sales for NVIDIA's Vera Rubin platform, with Samsung on track to triple HBM revenue in 2026. Yet rising memory prices hurt other divisions: mobile profits fell 35% to 2.8 trillion won, and displays dropped 20% to 400 billion won. Meanwhile, strike risks loom as South Korean unions threaten walkouts over pay disputes, threatening chip production.

Samsung's foundries operate at full capacity, with 2 nm node adoption expanding and 1.4 nm development progressing. Q2 will focus on HBM4E samples and next-gen GPU/CPU platforms, while displays shift to premium OLED segments. Despite stock gains of 88% this year, shares dipped 2.4% post-earnings, reflecting investor concerns about labor and supply chain risks.