Samsung Electronics expects to report a dramatic increase in quarterly profits, driven by strong global demand for artificial intelligence memory chips that continues to reshape the semiconductor industry.
The South Korean technology giant said on Tuesday it expects operating profit for the April-to-June quarter to reach 89.4 trillion won ($58.4 billion), representing a 19-fold increase from the same period last year. If confirmed, it would mark the company’s third consecutive quarter of record operating earnings.
Samsung also projected quarterly revenue of approximately 171 trillion won, more than double the level recorded a year earlier, reflecting sustained demand for semiconductors used in AI data centers and advanced computing systems.
The company released the earnings guidance ahead of its detailed financial results, which are scheduled for later this month. South Korean companies routinely issue preliminary earnings estimates to provide investors with an early indication of business performance.
The latest forecast comes as the rapid expansion of artificial intelligence applications continues to fuel unprecedented demand for high-performance memory chips. Limited global supply has pushed semiconductor prices higher, benefiting major manufacturers such as Samsung.
Industry analyst Marc Einstein of Counterpoint Research described the projected earnings as one of Samsung’s strongest quarterly performances, placing it among the technology sector’s best financial results.
He said the surge reflects the continued momentum of the AI industry, with memory chip producers benefiting from demand that has significantly outpaced available supply.
Samsung has responded by raising prices for its memory chips as customers compete for limited inventories.
Research firm IDC said demand for semiconductors used in AI infrastructure and data centers has created market conditions unlike anything previously experienced by the memory industry. According to IDC researcher Bryan Ma, supply constraints are expected to continue into next year as investment in AI computing expands.
The shortage has also affected the availability of chips used in consumer electronics, as manufacturers prioritize higher-margin products for AI applications.
Samsung remains one of the world’s largest semiconductor manufacturers, producing chips for major technology companies including Nvidia and Google while also supplying components for its own smartphones, computers and other electronic devices.
Despite the record earnings forecast, Samsung shares fell nearly 7 percent in Seoul on Tuesday as some investors had anticipated even stronger results following the company’s recent performance.
Even with the decline, Samsung’s market value has more than doubled since the beginning of the year. Rival chipmaker SK Hynix has posted even stronger gains, with its market capitalization rising by more than 200 percent over the same period.
The strong performance of South Korea’s leading semiconductor companies has helped drive the country’s benchmark Kospi index higher by more than 80 percent this year, reflecting investor confidence in businesses linked to artificial intelligence.
The AI-driven rally has extended across the global technology sector. Earlier this year, Nvidia reported record quarterly revenue exceeding $80 billion, although its shares slipped following the announcement as investors weighed increasing competition in the rapidly expanding AI semiconductor market.
Analysts expect demand for advanced chips to remain robust as companies continue investing heavily in artificial intelligence infrastructure and cloud computing technologies.
