South Korean technology giant Samsung Electronics expects to report a 19-fold increase in quarterly operating profit, driven by booming global demand for artificial intelligence (AI) memory chips.
In its earnings guidance released on Tuesday, Samsung forecast operating profit of 89.4 trillion won (about $58.4 billion) for the April–June quarter, marking its third consecutive record quarterly profit.
The company also projected quarterly sales of approximately 171 trillion won, more than double the revenue recorded during the same period last year.
Samsung attributed the strong performance to surging demand for semiconductors used in AI data centres and advanced computing, which has continued to outpace global supply and pushed chip prices higher.
Industry analysts said the AI boom has created unprecedented demand for memory chips, benefiting major semiconductor manufacturers.
Samsung is one of the world's largest chipmakers, supplying semiconductors to leading technology companies, including Nvidia and Google, alongside manufacturing its own range of electronic devices.
Despite the strong earnings outlook, Samsung shares fell more than 8% in early trading in Seoul, with some investors having expected even higher profits.
The company has nevertheless seen its market value more than double since the beginning of the year, while domestic rival SK Hynix has recorded gains of more than 200%, reflecting strong investor confidence in South Korea's semiconductor industry.
The continued expansion of AI infrastructure worldwide has fueled massive investment in chip production, with South Korea recently announcing plans to invest heavily in semiconductor manufacturing led by Samsung and SK Hynix.
.jpg)
.jpg.jpeg)