Samsung Electronics projects operating profit of 107.4 trillion won (£61bn or $80bn) for the third quarter ending September, a nine-fold increase year-over-year. The South Korean tech giant attributes the surge to soaring demand for memory chips used in artificial intelligence data centres.
The figure would mark Samsung's fourth consecutive quarter of record earnings. The company will release full third-quarter results at the end of October, following South Korea's standard practice of releasing earnings previews ahead of detailed financial reports.
Samsung ranks among the world's largest memory chip makers alongside South Korean rival SK Hynix and US-based Micron. These three manufacturers produce chips critical for AI firms like Nvidia. The company also operates one of the planet's biggest smartphone businesses, producing the Galaxy Fold and S26 models.
Global demand for AI-related semiconductors has intensified in recent years, creating chip shortages that have benefited manufacturers. Samsung's stock market valuation topped $1 trillion earlier this year. US tech giants Google, Amazon and Meta have pledged more than $650 billion in combined AI investments this year alone.
South Korea responded to the sector's growth potential. In June, the government unveiled plans for at least $880 billion in projects led by Samsung and SK Hynix to expand the country's chip manufacturing capacity. Rival manufacturers in Japan, China and Taiwan are also investing heavily in chip production as AI demand accelerates.
The chip shortage has forced manufacturers including Samsung to raise prices, making smartphones and computers more expensive for consumers. Samsung expects additional revenue contributions from its latest folding smartphone devices launched in August.