Samsung Forecasts Record Profit as AI Chip Demand Drives Earnings Surge
Samsung Electronics expects a sharp rise in quarterly earnings, forecasting a nearly 19-fold increase in operating profit as strong global demand for artificial intelligence (AI) memory chips continues to boost its semiconductor business.
In its earnings guidance released on Tuesday, the South Korean technology giant projected operating profit of 89.4 trillion won (about $58.4 billion) for the April-to-June quarter, marking its third consecutive record quarterly profit.
Samsung also estimated quarterly revenue of approximately 171 trillion won, more than double the figure recorded during the same period a year earlier.
The company is scheduled to publish its full financial results later this month.
The earnings outlook reflects continued strength in the semiconductor market, where demand for memory chips used in AI data centres and advanced computing infrastructure has continued to outpace global supply.
Industry analyst Marc Einstein of Counterpoint Research described the forecast as one of Samsung’s strongest quarterly performances, attributing the growth to the ongoing AI boom.
According to Einstein, limited chip supplies and unprecedented demand have allowed memory manufacturers to benefit from higher prices and stronger margins.
Samsung has raised prices for several of its memory products as supply constraints persist across the industry.
Market research firm IDC said demand for semiconductors powering AI infrastructure has created supply pressures unlike anything previously experienced in the memory chip sector.
IDC researcher Bryan Ma said the surge in AI-related demand is expected to keep semiconductor supplies tight well into next year.
Samsung is one of the world’s largest semiconductor manufacturers, producing chips for major technology companies, including Nvidia and Google, in addition to supplying components for its own consumer electronics.
Despite the strong earnings forecast, Samsung shares fell nearly 7% in Seoul after the announcement, as some investors had anticipated even stronger results.
Even so, the company’s market value has more than doubled since the beginning of the year, while domestic rival SK Hynix has gained more than 200% over the same period.
The performance of both chipmakers has helped drive South Korea’s benchmark Kospi index sharply higher this year.
The semiconductor industry’s rapid growth comes amid sustained investment in AI infrastructure worldwide.
Earlier this year, Nvidia reported record quarterly revenue exceeding $80 billion, although its share price came under pressure as investors weighed increasing competition in the AI chip market.
In June, the South Korean government announced plans to support semiconductor manufacturing through investments valued at more than $880 billion, with Samsung and SK Hynix expected to play leading roles.
Other major chip-producing economies, including Japan, China and Taiwan, are also expanding manufacturing capacity to meet growing global demand for AI processors and memory chips.
