Samsung forecasts record $80bn profit as AI chip demand surges

Samsung Electronics expects its third-quarter operating profit to rise ninefold year on year, driven by demand for memory chips used in artificial-intelligence data centres.

The forecast for the three months ending in September is 107.4tn won ($80bn). It would mark the company’s fourth consecutive quarter of record earnings.

Memory demand from AI systems

Samsung is one of the world’s largest memory-chip makers, alongside South Korea’s SK Hynix and US-based Micron. Their components are used by AI developers including Nvidia.

Global demand for chips supporting AI development has contributed to a semiconductor shortage and lifted manufacturers’ revenues. Samsung’s market valuation crossed $1tn earlier this year.

Smartphones and wider investment

Samsung could also receive support from foldable smartphones launched in August. The company makes devices including the Galaxy Fold and S26.

Samsung will publish its full third-quarter results at the end of October. Forecasts issued by major South Korean companies are based on internal data and are generally considered more reliable than estimates from external analysts.

Investment across the sector is also increasing. Google, Amazon and Meta have pledged more than $650bn for AI projects this year, while South Korea announced plans in June for at least $880bn in projects led by Samsung and SK Hynix to expand chip manufacturing. The component shortage has already pushed manufacturers to raise prices for smartphones and computers.