Tech Newsround – Samsung & OpenAI

Samsung Q1 26 – Memory Monster

• Samsung reported preliminary Q1 26 results substantially above expectations, confirming that the company is back at the top of its game and is set to retake its crown as the king of memory.
• Preliminary Q1 26 revenues / operating profit were KRW133tn / KRW57.2bn way above consensus of KRW113bn / KRW39.2bn.
• This is an indication that the main theme of the results cycle coming this month is going to remain AI demand driving a historic shortage for memory and a bonanza for the memory makers.
• However, the knock-on effect is already being felt in consumer goods, where the high cost of memory has driven device prices up and curtailed demand, especially in the mid to low tiers of the market.
• Consequently, this is likely to be another good quarter for the memory makers that leads to estimate upgrades and further increases in their share prices.
• For example, my 2026 operating profit for Samsung is KRW178bn, 32% of which Samsung has printed in the first quarter alone, clearly indicating that my already increased number is still too low.
• This forecast leads to an EPS estimate of KRW23,900, putting the shares on less than 10x 2026 PER with a pretty high degree of certainty that the estimate will be met or beaten.
• I still have a position in Samsung Electronics and remain very happy to sit on it.

OpenAI – The sin of spread

• The golden rule of any start-up trying to get to cashflow break-even is focus, and while it looked like OpenAI had made some progress, its purchase of a podcast shows that it hasn’t really learned the lesson.
• OpenAI is spending “low hundreds of millions” to acquire Technology Business Programming Network (TBPN) in a deal that makes very little sense at all.
• TBPN is a podcast network that streams daily shows covering the technology industry and has a fairly strong following from within the US technology industry.
• OpenAI maintains that TPBN will maintain editorial independence, but it will now be conflicted when it comes to airing any content or views that are critical of OpenAI, its business or the valuation of the company.
• Independence aside, the real issue here is focus, as this is the one area where I see loss-making start-ups fail, resulting in forced acquisition or bankruptcy.
• Other than controlling TBPN’s narrative and using it to spread its message in the technology community, I see no reason for OpenAI to own this company.
• Furthermore, OpenAI is burning billions of dollars in cash every quarter, and in my opinion, has no money to spare on vanity projects.
• OpenAI is in an existential race with Google (and to some degree Anthropic) to become the consumer AI ecosystem, as this is the only way that it has a hope of justifying the $850bn valuation at which it last raised money.
• While I think its model has a slight edge over its peers and it is a household name, Google has massive cash flow to invest and the ability to distribute its AI to more than 3bn users.
• These are formidable assets, and OpenAI’s victory is by no means assured.
• This is why, now more than ever, it should be laser-focused on that goal and not wasting management time mucking about in media.
• If this is a real sign of how OpenAI’s management team operates, Sundar Pirchai will be breathing more easily today.