SEOUL, Oct 8: Samsung Electronics is expecting a sharp surge in third-quarter profit as the global artificial intelligence boom drives demand for advanced memory chips used in data centres and AI systems.
The South Korean technology giant on Thursday forecast quarterly operating profit of about 107.4 trillion won, equivalent to roughly USD 80 billion, according to Reuters. If achieved, the figure would represent an almost nine-fold increase from a year earlier and mark an unprecedented profit level for a technology company.
The earnings outlook underlines how rapidly artificial intelligence has changed the semiconductor industry. Technology companies around the world are investing heavily in computing infrastructure capable of training and running increasingly sophisticated AI models. Those systems require large quantities of high-performance memory, creating a powerful new source of demand for chip manufacturers.
Samsung is one of the world’s largest memory-chip producers, and the current AI investment cycle has strengthened its position in a market that has experienced significant changes in demand over the past several years.
The company expects its semiconductor business to benefit particularly from demand for advanced memory products. AI data centres require powerful processors alongside high-bandwidth memory, which allows large volumes of information to be transferred quickly between processors and memory.
The expansion of generative AI services has therefore created an entirely new layer of demand beyond conventional computers and smartphones. Cloud providers, technology companies and specialist AI developers are building larger computing clusters, increasing their need for advanced chips.
Samsung’s projected earnings also provide an indication of the wider recovery taking place across the semiconductor industry. Memory-chip prices and demand had previously been affected by inventory adjustments and weaker consumer electronics markets. The AI boom, however, has altered the industry’s outlook by creating a rapidly expanding market for high-end components.
According to Reuters, chipmakers expect shortages to continue into 2028 as AI-related demand remains strong. The prolonged imbalance between supply and consumption could encourage manufacturers to expand production capacity while also giving suppliers greater pricing power.
For Samsung, the development is particularly significant because memory chips remain one of its core businesses. The company competes with other major semiconductor manufacturers for contracts from global technology companies building AI infrastructure.
The boom is not limited to data-centre operators. AI capabilities are increasingly being incorporated into personal computers, smartphones and other connected devices, potentially creating another source of demand for advanced memory.
However, the semiconductor expansion also presents challenges for manufacturers of consumer electronics. Higher memory prices can increase the cost of producing smartphones, computers and other devices.
Reuters reported that rising chip costs are already putting pressure on smartphone margins. Manufacturers may have to absorb part of the increase, raise retail prices or adjust specifications to protect profitability.
The development highlights a growing divide within the technology industry. Companies supplying the infrastructure needed for artificial intelligence are benefiting from massive capital spending, while businesses that depend on those components may face higher production costs.
AI has consequently become an important driver of semiconductor investment. Data-centre operators are competing to secure computing capacity, while chip companies are expanding their product portfolios to meet the requirements of increasingly complex AI workloads.
The scale of investment has also increased interest in energy, networking and cooling technologies required to operate large computing facilities. The semiconductor boom is therefore affecting a much broader technology ecosystem rather than benefiting chipmakers alone.
Samsung’s expected earnings come at a time when investors are closely watching whether the rapid expansion of AI spending can continue. Technology companies have committed billions of dollars to data centres and advanced computing infrastructure, creating substantial opportunities for semiconductor suppliers.
At the same time, questions remain about the long-term economics of the AI industry. Companies developing AI services face substantial computing costs, while investors are increasingly examining whether revenue growth will ultimately justify the enormous infrastructure spending.
Despite those concerns, demand for AI hardware remains strong. The ability of companies to train increasingly powerful models and provide AI services to millions of users depends heavily on access to advanced processors and memory.
Samsung’s latest outlook demonstrates how that demand is translating into earnings for the semiconductor industry. The company’s projected profit also illustrates the extent to which artificial intelligence has become a central force shaping the global technology market.
The AI-led semiconductor cycle could continue to influence investment decisions across the industry in the coming years. Manufacturers are likely to focus increasingly on specialised memory, advanced packaging and other components designed for high-performance computing.
For consumers, the effects could be mixed. Faster AI-enabled devices and more powerful digital services may become available, but higher component costs could make some products more expensive.
For technology companies, meanwhile, securing reliable access to advanced chips is becoming a strategic priority. The companies capable of obtaining sufficient computing resources may have an advantage as AI applications expand across business, research and consumer services.
Samsung’s latest forecast therefore represents more than a strong quarterly earnings outlook. It is another indication that artificial intelligence is reshaping the economics of the global semiconductor industry, with memory chips emerging as one of the most important beneficiaries of the new technology cycle.