The South Korean memory chip leader smashed expectations with a 326% operating profit surge to 3.42 trillion won ($2.5 billion) in Q1, trouncing the 2.8 trillion won Wall Street forecast.

The stellar performance was driven by unprecedented demand for high-bandwidth memory (HBM) chips used in artificial intelligence servers, which now account for 38% of total revenue compared to just 12% a year ago.

Key Financial Highlights:

• Revenue: 12.43 trillion won ($9.1B), up 89% YoY

• Operating margin: 27.5% vs 18.3% in Q4 2024

• HBM chip sales: 4.72 trillion won (+420% YoY)

• DRAM ASP increase: 19% quarter-over-quarter

Strategic Developments:

• Completed HBM3E qualification with Nvidia (NVDA)

• Commenced mass production of 16-layer HBM4 chips

• Announced $14B U.S. advanced packaging facility

• AI-related memory now 61% of product mix

“Generative AI is driving the most explosive memory demand cycle we’ve seen since smartphones,” said CFO Kim Woohyun during the earnings call. Management confirmed a sold-out position across its HBM product lines through at least 2026, reflecting what analysts call ‘the most supply-constrained memory market in history.