Samsung forecasts record profit on AI chip demand

Samsung Electronics expects a 19-fold jump in profit, powered by global demand for AI memory chips and continued tight supply across the semiconductor market. The South Korean group forecast that it made 89.4tn won (£43.6bn; $58.4bn) between the start of April and the end of June, marking its third record quarterly operating profits in a row.

Sales were projected at around 171tn won for the quarter, more than double the amount reported for the same period last year. Industry analyst Marc Einstein of Counterpoint Research called the expected result one of “the best quarterly performances ever” and tied it to the AI boom, while IDC said demand for data centres and AI infrastructure has been unlike anything the memory industry has previously navigated.

Samsung, which supplies chips to companies including Nvidia and Google, has raised memory chip prices as supplies remain constrained. Its shares fell by almost 7% in Seoul on Tuesday because some investors had expected even higher profits, though its stock market value has more than doubled since the start of this year.