SEOUL - Tech giant Samsung Electronics estimated on Tuesday that its first-quarter profit had soared 755 percent annually to a record high of 57.2 trillion won ($37.9 billion), driven by strong sales of chips crucial for artificial intelligence.
The South Korean government has pledged to become one of the world's top three AI powers, alongside the United States and China.
Samsung has emerged as a key player -- along with fellow South Korean firm SK hynix -- in the supply of high-performing chips in demand from companies racing to keep up with the fast-evolving AI industry.
The company also said in a regulatory filing that its sales were expected to reach 133 trillion won ($88 billion) in the three months to the end of March, a 68 percent increase compared to the same period last year.
The strong outlook come despite the risk posed to the global semiconductor supply chain if the war in the Middle East drags on.
A South Korean ruling party lawmaker told reporters last month that officials from Samsung and other companies had raised concern about potential disruption to chip production if some key supply chain materials, such as helium, cannot be sourced from the Middle East.
"Samsung Electronics achieved its highest-ever results, driven by rising revenue and profits in its memory-focused Device Solutions (DS) division," a Samsung spokesperson said.
He said the firm's competitiveness in home appliances and smartphones has helped to boost earnings.
The operating profit -- more than an eight-fold increase from 6.69 trillion won a year earlier -- was 36.7 percent higher than the average estimate, South Korea's Yonhap news agency reported, citing its own data firm.
With growing demand for memory chips, Samsung is expected to see "even better figures" in the months ahead, analyst Ryu Hyung-keun of Daishin Securities told AFP.
"As we are seeing a surge in memory chip prices, its profit margins will improve further for the remainder of the year," he said.