Samsung Profits Driven by AI Chip Demand Reach Record Levels
Samsung Electronics expects its operating profit to surge ninefold from a year earlier, reaching 107.4 trillion won (£61bn; $80bn) for the three months to the end of September. The forecast marks the company’s fourth consecutive quarter of record earnings, with strong demand for chips used in artificial intelligence (AI) data centres driving the increase.
Samsung’s forecast reflects the growing importance of its semiconductor business as technology companies expand spending on AI infrastructure. The company is one of the world’s largest memory chip manufacturers, alongside South Korea’s SK Hynix and US-based Micron.
The latest figures show how Samsung AI chips and other memory products are benefiting from the rapid expansion of AI computing. Companies such as Nvidia rely on advanced memory chips for systems that train and operate increasingly powerful AI models.
Samsung is also expected to benefit from its smartphone business following the launch of its latest folding devices in August. The company produces Galaxy smartphones, including the Galaxy Fold and S26 series.
The full third-quarter results are due at the end of October. Samsung releases an earnings forecast ahead of the detailed figures, allowing investors to assess the expected performance using information based on the company’s internal data.
The memory chip demand behind the latest forecast reflects a wider surge in spending on AI infrastructure. Major technology companies, including Google, Amazon and Meta, have committed more than $650bn to AI projects this year, increasing demand for the hardware needed to run large-scale computing systems.
The semiconductor boom has also strengthened Samsung’s market position. Its stock market valuation crossed $1tn (£757bn) earlier this year as investors responded to rising expectations for the chip industry.
South Korea is seeking to expand its role in the global semiconductor market. The country announced plans in June for at least $880bn in projects led by Samsung and SK Hynix to strengthen chip manufacturing capacity.
The next major test will come with Samsung’s full third-quarter results later this month. Investors will be watching whether demand for Samsung AI chips and other memory products continues at the current pace.
The outlook will also depend on how quickly global investment in AI data centres develops. Rising memory chip demand has already encouraged manufacturers to increase prices, which can raise costs for products such as computers and smartphones. With companies across Asia and the United States continuing to invest heavily in semiconductor facilities, Samsung profits driven by AI chip demand could remain a major focus for technology investors in the coming quarters.
