Samsung Electronics expects a nine-fold surge in quarterly operating profit to 107.4tn won, or roughly $80bn, for the three months ending in September. Driven by heavy demand for artificial intelligence data centre memory chips, the tech giant is heading toward its fourth quarter in a row of record earnings.
Propelled by an unprecedented global appetite for computer chips that power artificial intelligence development, this earnings preview marks the fourth quarter in a row of record results for the company.
Samsung Boosts Production for Nvidia and AI Firms
Samsung stands alongside local rival SK Hynix and American firm Micron as one of the world’s largest memory chip makers, producing vital components for AI firms like Nvidia. The sharp escalation in demand has triggered global semiconductor shortages, lifting sales and pushing Samsung’s stock market valuation above $1tn, or £757bn, earlier this year.
US tech giants including Google, Amazon, and Meta have pledged more than $650bn toward AI projects this year. Meanwhile, South Korea unveiled plans in June for at least $880bn in projects led by Samsung and SK Hynix to enhance the nation’s chip manufacturing capabilities.
Consumers Face Rising Costs As Samsung Prepares Full Report
Beyond data centre components, Samsung produces consumer hardware such as the Galaxy Fold and S26 smartphones. The company also anticipates a boost from its latest folding devices released in August. At the same time, the chip shortage has forced firms to raise prices, driving up costs for everyday consumer electronics like computers and phones.
Major South Korean firms routinely issue earnings previews to brief investors ahead of detailed reports. Samsung plans to release its full third-quarter earnings figures at the end of October.
