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TechDogs - "Samsung Gets Closer To NVIDIA In AI Chip Race!"

IT Infrastructure

Samsung Gets Closer To NVIDIA In AI Chip Race!

By Manali Kekade

Updated on Thu, Apr 16, 2026

Overall Rating
The race to power artificial intelligence (AI) is changing the chip industry. While AI processors get most of the attention, memory chips are becoming just as important. Recent earnings from Samsung Electronics show this shift may already be impacting the competition.


TL;DR

 
  • Samsung posts record profits as AI memory chip demand surges.
  • Analysts say it could rival or surpass NVIDIA in profits by 2027.
  • Growth is strong, but risks remain due to volatile chip prices and uncertain AI demand.

TechDogs - "An Image Showing Samsung Electronics AI Chip"Source
 
Samsung reported a record preliminary first-quarter operating profit of 57.2 trillion won, beating market expectations and signaling strong growth in its semiconductor business. The surge is largely driven by rising demand for memory chips used in AI data centers, including high-bandwidth memory (HBM), DRAM, and NAND.

Analysts are now projecting a sharp rise in Samsung’s future earnings. KB Securities estimates operating profit could reach 327 trillion won in 2026 and 488 trillion won in 2027, potentially surpassing NVIDIA’s estimated 485 trillion won. The projection is based on continued demand for memory as AI workloads grow more complex.

“The trend of increasing memory content required for AI inference is expected to persist in the coming years,” said Kim Dong-won, the head of research at KB Securities. “Accordingly, Samsung is expected to generate operating profit of 327 trillion won in 2026 and 488 trillion won in 2027, making it the global No. 1 by operating profit.”

Other firms have also issued strong forecasts, with some estimates going even higher. These expectations have been supported by supply constraints, rising chip prices, and reports of long-term supply agreements between memory makers and major tech companies like Google and Microsoft. In some cases, chip prices have increased by more than 80% compared to the previous quarter.

Alongside its AI-driven memory chip profits, Samsung’s growth is also being supported by its display business. The company has secured a three-year exclusive deal with Apple to supply foldable displays, adding another strong revenue stream and strengthening its overall growth outlook.
 

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Despite the optimism, analysts caution that these projections remain above broader market consensus. There are concerns about how long memory prices can stay elevated and whether the current pace of AI-driven investment will continue. Some reports also suggest that future growth could slow if spending is pulled forward without additional budget increases.

Even if Samsung’s profits approach NVIDIA’s, the gap in market value remains significant. NVIDIA continues to dominate the AI chip ecosystem, while Samsung’s valuation is still far lower.

The coming years will likely depend on how sustained the demand for AI infrastructure proves to be and whether memory chips can maintain their current momentum in a rapidly evolving market.

First published on Thu, Apr 16, 2026

Manali Kekade

Manali Kekade

Tech News Correspondent, Senior Writer TechDogs

Manali Kekade is a seasoned tech news correspondent and senior writer with expertise in emerging technologies and marketing innovation. Her writing brings clarity and relevance to fast-evolving topics, making complex developments accessible to a wide audience. She pairs structured reporting with an engaging narrative style, ensuring that every story offers useful takeaways. When not writing, she explores fiction and sound design—creative outlets that inspire her storytelling lens.

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Tags:

Samsung Electronics NVIDIA AI Chip Market Memory Chips Semiconductor Industry AI Data Center

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