By Blessing Nweke
South Korean technology giant Samsung Electronics has forecast a massive surge in quarterly profits, driven by booming global demand for artificial intelligence (AI) memory chips.
The company said it expects to post operating profits of 89.4 trillion won ($58.4 billion) for the April-to-June quarter, representing a 19-fold increase from the same period last year. The forecast marks Samsung’s third consecutive record quarterly operating profit and highlights the continued strength of the AI-driven semiconductor market.
Samsung also projected quarterly sales of around 171 trillion won, more than double the revenue recorded a year earlier. The earnings guidance was released ahead of the company’s full financial results, which are expected later this month.
Industry analysts say the rapid expansion of AI data centers has fueled unprecedented demand for advanced memory chips, while limited supply has allowed manufacturers to raise prices. Marc Einstein of Counterpoint Research described Samsung’s expected earnings as among the strongest quarterly performances ever, adding that the AI boom continues to drive exceptional growth across the memory chip industry.
Research firm IDC said demand for semiconductors used in AI infrastructure has created supply conditions unlike anything the industry has previously experienced. IDC researcher Bryan Ma expects chip supplies to remain tight through next year as investment in AI data centers continues to accelerate.
Samsung is one of the world’s largest semiconductor manufacturers, supplying chips to major technology companies including Nvidia and Google, while also producing smartphones and other consumer electronics.
Despite the strong earnings outlook, Samsung shares fell more than 8% in Seoul after the announcement, as some investors had anticipated even stronger results. Meanwhile, rival SK Hynix has also enjoyed significant gains, reflecting the industry’s continued momentum amid soaring global demand for AI chips.
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