Samsung Electronics is heading for a record quarter. The company expects an operating profit of 107.4 trillion won, or about USD 80.1 billion, for the July-September quarter, which is almost nine times higher than the profit of the company same time the last year. Even the reported revenue of the company has also touched the mark of 195 trillion won. While in both sections, the company has created a benchmark, still, the analysts predictions weren’t matched.
The driving factor behind this rise involves the strong sales of AI-related memory chips. Regarding this, Sanjeev Rana, head of North Asia semiconductor research at CLSA Securities Korea has stated, “We remain bullish on the memory cycle and Samsung Electronics. Demand continues to exceed supply and HBM pricing is poised for a big step up in 2027.”
The numbers show just how much AI is changing the chip business. Samsung is the world’s biggest memory chip maker. Demand for memory is rising faster than supply, which has pushed prices higher. Notably, High-bandwidth memory, or HBM, is a key part of the AI boom. Samsung is also working to catch up with SK Hynix, one of it’s close local competitors, in the HBM market.
AI data centres need more than powerful processors. They also need a huge amount of memory to store and move data while AI models are working. HBM sits close to advanced AI processors and helps them handle large amounts of data at high speed. Regular memory chips are also in demand as companies build more AI servers.
As orders grow, chip makers are finding it harder to keep up. This has pushed memory prices higher. DRAM prices are expected to rise by another 10% to 15% in the fourth quarter, although the increase is slower than earlier jumps.
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Samsung is benefiting from this rush. Its HBM shipments are growing, while higher memory prices are helping its chip business. The company is also adding more production capacity to meet demand.
However, not every part of Samsung is gaining from the trend. Higher chip costs are putting pressure on its smartphone and consumer electronics businesses. Its mobile business is also expected to report a loss for the quarter.
Samsung’s expected record profit shows how strongly AI is driving the chip market. AI data centers need more memory than before, and that demand is helping Samsung’s chip business. For now, the AI boom remains a major growth driver for the company.