Samsung Electronics said it expects profit for the first three months of 2024 to jump more than 10 times compared to the same period last year.
This comes as chip prices have recovered from the post-pandemic slump and demand for artificial intelligence (AI)-related products is surging.
South Korea-based Samsung is the world's largest manufacturer of memory chips, smartphones, and televisions.
The company plans to release a detailed financial report on April 30th.
The technology giant estimated its operating profit rose to 6.6 trillion won ($4.9 billion, £3.9 billion) in the January-March period, a 931% increase compared to the same period in 2023. This exceeded analysts' expectations of approximately 5.7 trillion won.
The company's earnings are expected to be boosted by the recovery in semiconductor prices in the global market from the severe slump last year.
Global memory chip prices are estimated to have increased by about a fifth in the last year.
Samsung's semiconductor division is typically the company's biggest source of revenue.
The boom in AI technology is also a tailwind, and demand for semiconductors is expected to remain strong this year as well.
The earthquake that hit Taiwan on April 3 has tightened global chip supply, and Samsung may further raise prices.
Taiwan is home to several major chipmakers, including TSMC, a supplier to Apple and Nvidia.
TSMC said the earthquake did not have a major impact on production, but did cause some disruption to operations.
Samsung is also expected to increase sales of its new flagship smartphone, the Galaxy S24, which was released in January.
