Samsung forecasts record profit surge as AI chip demand accelerates

Samsung has projected a sharp jump in profits, forecasting that its operating profit for the fourth quarter will nearly triple from a year earlier as the global artificial intelligence (AI) boom continues to fuel demand for memory chips.

In a regulatory filing, the South Korean tech giant estimated operating profit of around KRW 20 trillion for the October–December period. 

That figure comfortably beat market expectations of roughly KRW 18 trillion and marked a steep rise from KRW 6.49 trillion reported in the same quarter last year. The forecast would also represent Samsung’s highest-ever quarterly operating profit, surpassing its previous record set in 2018.

The outlook underscores how rapidly chip prices have climbed as manufacturers race to supply memory chips used in AI servers, personal computers, and mobile devices. 

Tight supply conditions, combined with surging AI-related demand, have pushed prices for conventional memory products significantly higher.

Samsung shares briefly touched a record high during the session before closing 1.6% lower, as some investors booked profits following a massive rally over the past year.

Other major memory chipmakers, including SK Hynix and Micron Technology, are also struggling to keep up with demand and are expanding fabrication capacity.

Commenting on the broader trend, Jensen Huang, CEO of Nvidia, recently said the world will need many more chip plants due to the rise of what he called “AI factories."