AFP, Seoul

Samsung Electronics said Thursday that operating profit soared 750 percent on-year to a record high in the first quarter thanks to strong sales of chips crucial for artificial intelligence, and forecast continued healthy demand in the next three months.

The South Korean technology giant has emerged as a key player -- along with rival SK hynix -- in the supply of high-performing chips in demand from companies racing to keep up with the fast-evolving AI industry.

Their strong performance has come as the South Korean government has pledged to make the country one of the world’s top three AI powers alongside the United States and China.

Samsung said in its earnings report on Thursday it had “achieved record quarterly revenue and operating profit through AI technology innovations and proactive market response”.

It said operating profit came in at 57.2 trillion won ($38.4 billion), having said earlier in the month that it expected to reach a quarterly record.

Net profit hit 47.1 trillion won, beating forecasts in a Bloomberg survey of analysts, while sales reached 133.9 trillion won, an all-time quarterly high.

Its chips division also beat expectations with a huge rise in profit to 53.7 trillion won, accounting for the bulk of the unit’s total.

The company said its memory arm “surpassed its quarterly sales record by addressing high-value-added AI demand despite limited supply availability, with industry-wide memory price increases also a contributing factor”.

It added that it expected “strong memory demand to continue” through the second quarter as the buildout of AI infrastructure continues apace.

Chief financial officer Park Soon-cheol brushed off concerns about supply chain disruption due to the Middle East war, saying “semiconductor production lines are currently operating normally”.