The artificial intelligence sector continues to drive significant financial gains, particularly for memory chip manufacturers. Samsung Electronics reported its operating profit more than tripled to 20 trillion won in the fourth quarter, with its chip business seeing a 470% profit jump to 16.4 trillion won. This surge is attributed to robust demand for AI-powered memory chips, including next-generation HBM4 chips, which Samsung plans to ship to a major customer, likely Nvidia, in February. Samsung expects its HBM revenue to more than triple this year, having already secured all orders for its capacity.
SK Hynix, a key competitor, surpassed Samsung in annual operating profit for the first time in 2025, posting 47.2 trillion won compared to Samsung's 43.6 trillion won. SK Hynix's lead is largely due to its strong position in high-bandwidth memory (HBM), crucial for AI processors. Meanwhile, Nvidia's stock increased by 39% in 2025, outperforming the S&P 500's 16% rise, and analysts predict a 52% revenue growth for its fiscal 2027. Meta Platforms also gained 13% in 2025, though investor attention is on its substantial AI infrastructure spending.
In the AI software space, Adobe achieved record fiscal fourth-quarter revenue of $6.2 billion with its Firefly AI platform. Figma, a newer public company, integrated AI through its acquisition of Weavy and its Figma Make tool, and notably partnered with OpenAI to bring its software to ChatGPT, leading to record Q3 revenue of $274.2 million. However, Figma reported a net loss of $1.1 billion in Q3 due to IPO-related stock compensation. SoundHound AI, despite its stock falling 49% in 2025, expects its revenue to more than double, with its conversational AI tools used by brands like Panda Express and Krispy Kreme.
Other AI-related developments include C3.ai Inc. seeing its stock surge on rumors of a potential acquisition by Automation Anywhere, despite a 61% decline over the past year. SanDisk, part of Western Digital, is also expected to report strong earnings driven by the increasing demand for NAND flash memory in AI applications. Beyond traditional AI, the U.S. government's planned $1.4 trillion infrastructure spending is anticipated to significantly benefit companies developing AI infrastructure. In quantum computing, while Rigetti Computing presents a high-risk investment, IBM offers a more stable option for investors interested in this advanced technology, which still faces challenges with size, cost, and error rates, even as Google's Willow chip shows immense speed.
Key Takeaways
- Samsung's Q4 operating profit more than tripled to 20 trillion won, driven by AI memory chip demand, with HBM revenue projected to triple this year.
- SK Hynix reported a record 47.2 trillion won operating profit in 2025, surpassing Samsung, largely due to its lead in high-bandwidth memory (HBM) for AI.
- Nvidia's stock increased 39% in 2025, outperforming the S&P 500, with analysts forecasting 52% revenue growth for its fiscal 2027.
- Meta Platforms' stock gained 13% in 2025, but investor focus remains on its substantial spending on AI infrastructure.
- Adobe's Firefly AI platform contributed to a record fiscal Q4 revenue of $6.2 billion.
- Figma partnered with OpenAI to integrate its software with ChatGPT, achieving record Q3 revenue of $274.2 million.
- SoundHound AI's stock dropped 49% in 2025, despite its revenue being expected to more than double, reporting a $109.2 million net loss in Q3.
- C3.ai Inc. stock saw a surge due to rumors of a potential acquisition by Automation Anywhere, highlighting interest in enterprise AI software.
- SanDisk (Western Digital) expects strong earnings, boosted by the increasing demand for NAND flash memory in AI applications.
- The U.S. government's planned $1.4 trillion infrastructure spending is anticipated to significantly benefit companies developing AI infrastructure.
Samsung Profit Soars as AI Boosts Chip Demand
Samsung Electronics announced its operating profit more than tripled to a record 20 trillion won in the fourth quarter. This huge growth comes from strong demand for memory chips, especially those used in AI. The company's chip business saw profits jump by 470% to 16.4 trillion won. Samsung is already making its next-generation HBM4 chips and plans to ship them in February to a major customer, likely Nvidia. The company expects its overall HBM revenue to more than triple this year, having already secured all orders for its HBM capacity.
Samsung Chip Profit Jumps Tenfold on AI Demand
Samsung Electronics Co. reported its operating profit increased more than tenfold to 6.61 trillion won in the first quarter. This huge jump was better than expected, driven by high demand and prices for AI-powered memory chips. The company's HBM chip business, crucial for AI accelerators like those from Nvidia, saw significant growth. Samsung's shares have doubled in value over the last year, showing strong investor confidence. The company also plans to buy back 3.57 trillion won of its shares.
SK Hynix Beats Samsung in 2025 Profit
SK Hynix surpassed Samsung in annual operating profit for the first time in 2025, driven by its strong lead in AI memory chips. SK Hynix reported a record operating profit of 47.2 trillion won, while Samsung posted 43.6 trillion won. SK Hynix focuses mainly on memory chips, especially high-bandwidth memory or HBM, which are vital for AI processors like Nvidia's. Analysts expect SK Hynix to keep its lead in HBM4, though Samsung is also making progress in this area. SK Hynix also outperformed Samsung in the wider DRAM market.
Two AI Stocks to Buy in 2026
Keithen Drury recommended Nvidia and Meta Platforms stocks a year ago. In 2025, Nvidia's stock increased by 39%, while Meta Platforms gained 13%. Although Meta lagged behind the S&P 500's 16% rise, both stocks are still considered good buys for 2026. Nvidia's strong outlook remains unchanged, with analysts predicting 52% revenue growth for its fiscal 2027. Meta Platforms' social media business performed well in 2025, but investors worry about its large spending on AI infrastructure.
Nvidia and Meta Still Good AI Stock Buys
Nvidia and Meta Platforms both showed good stock gains in 2025, but only Nvidia beat the S&P 500. Nvidia's stock went up 39%, while Meta's rose 13% compared to the S&P 500's 16% increase. Despite this, both AI stocks are still recommended for buying in 2026. Nvidia's future looks strong with continued high revenue growth expected. Meta Platforms' core business is doing well, but investors are watching its spending on AI infrastructure closely.
SoundHound AI Stock Fell 49 Percent in 2025
SoundHound AI, a leader in conversational AI software, saw its stock drop by 49% in 2025. Despite this fall, the company's revenue is growing fast, expected to more than double for the year. SoundHound's AI tools, like Dynamic Drive-Thru and Employee Assist, are used by major brands such as Panda Express and Krispy Kreme. The company reported a net loss of $109.2 million in Q3 2025 due to heavy spending on growth. While its stock is still expensive compared to Nvidia, analysts predict SoundHound's revenue could reach $230.2 million in 2026, suggesting a possible recovery this year.
CRISPR Therapeutics Offers Hope Beyond AI
CRISPR Therapeutics is a biotech company working to cure diseases that AI cannot. It uses a gene-editing platform to develop treatments for difficult conditions. One candidate, CTX211, aims to restore insulin production for Type 1 diabetes patients. Another, SRSD107, is a potential long-acting anticoagulant with fewer side effects. The company also develops CTX310 to lower bad cholesterol and triglycerides. CRISPR Therapeutics has already seen success with Casgevy, the first CRISPR-based medicine for sickle cell disease.
C3.ai Stock Jumps on Takeover Talk
C3.ai Inc. stock is surging due to rumors that Automation Anywhere may acquire the company. Retail traders are showing increased interest, with a 122% rise in chatter on Stocktwits. C3 AI provides AI software for businesses and government agencies, including the U.S. Air Force and the U.S. Department of Health and Human Services. Automation Anywhere specializes in robotic process automation. Despite a 61% decline in the past year, investors are now bullish on C3.ai's future.
SanDisk Earnings Boosted by AI Demand
SanDisk, now part of Western Digital, will report its earnings on Thursday. Investors are keenly watching for how AI demand is boosting the company's growth. Analysts expect strong results, driven by the increasing need for NAND flash memory in AI applications. The earnings report will offer important details about SanDisk's future growth from AI and its standing in the competitive semiconductor market.
Figma and Adobe Battle for AI Software Lead
Figma and Adobe are both using AI to improve their design software. Adobe launched its Firefly AI platform and achieved record fiscal fourth-quarter revenue of $6.2 billion, with profits also rising. Figma, a newer public company, is integrating AI through its acquisition of Weavy and its own Figma Make tool. Figma also partnered with OpenAI to bring its software to ChatGPT, leading to record Q3 revenue of $274.2 million. While Figma saw strong sales growth, it reported a net loss of $1.1 billion in Q3 due to IPO-related stock compensation.
IBM Offers Safer Quantum Computing Investment
Rigetti Computing is a small company focused solely on quantum computing, but its stock is risky due to the newness and high cost of the technology. IBM, a larger and more established company, offers a safer investment in quantum computing and also pays a dividend. While Rigetti's quantum processing units are fast, with Google's Willow chip showing immense speed, quantum computers are still large, expensive, and prone to errors. Rigetti has limited customers and reported a $351 million net loss, funding operations by issuing new shares. IBM provides a more stable option for investors interested in this advanced technology.
Two AI Stocks to Win From Infrastructure Spending
The U.S. government plans to spend $1.4 trillion on infrastructure this year, which is expected to greatly benefit certain AI stocks. Experts believe companies developing AI infrastructure will be the main winners from this huge investment. This spending will create a major boost for the AI sector, increasing demand for AI hardware, software, and services. Two specific AI stocks are predicted to be the biggest beneficiaries, as they are well-positioned to grow from the widespread adoption of AI technologies across various industries.
Sources
- Samsung profit triples to record high as AI boom exacerbates chip shortage
- Samsung’s Chip Profit Soars After AI Supercharges Memory Market
- SK Hynix overtakes Samsung in annual profit for the first time as AI reshapes rivalry
- I Recommended 2 AI Stocks a Year Ago. Only 1 Beat the Market in 2025, but Both Are Still Worth Buying Hand Over Fist in 2026.
- I Recommended 2 AI Stocks a Year Ago. Only 1 Beat the Market in 2025, but Both Are Still Worth Buying Hand Over Fist in 2026.
- This Popular Artificial Intelligence (AI) Stock Plunged by 49% in 2025. Here's What Could Happen Next.
- Forget AI Stocks: This Biotech Could Cure What AI Can't Touch
- This AI Stock Is Surging On Takeover Chatter – And Retail Traders Are Piling In
- Sandisk Earnings Preview: AI Demand Lifts Growth Outlook
- Better AI Software Stock: Figma vs. Adobe
- Forget Rigetti Computing, This Established AI Giant Is a Safer Play
- Prediction: These 2 AI stocks will be the biggest winners from $1.4 trillion infrastructure spending
Comments
Please log in to post a comment.