Samsung Electronics is forecasting its strongest quarterly profit in more than three years, driven by surging global demand for AI-related hardware and rising prices of conventional memory chips. The company estimated an operating profit of 12.1 trillion won ($8.5 billion) for the third quarter, a 32% increase from last year and far above the 10.1 trillion won SmartEstimate by LSEG — its best result in 13 quarters.

Analysts attributed the earnings beat to an unexpected boom in commodity memory chips like DRAM and NAND, supported by limited supply and strong demand from data centre servers. “Samsung is a big beneficiary of growing demand for commodity chips,” said analyst Sohn In-joon, noting that tighter supply and reduced inventories have boosted prices.

Although Samsung’s progress in supplying advanced HBM chips to Nvidia has been slower than expected, its memory division helped offset the lag. The company also recorded 8.7% revenue growth to a record 86 trillion won, aided by the weaker Korean currency and reduced foundry losses.

Industry experts warn that supply shortages for conventional chips could continue into 2026, while geopolitical tensions — including potential U.S. tariffs and China’s export restrictions — may pose risks. Samsung aims to regain momentum in AI chip competition by accelerating development of next-generation HBM4 products, with commercial sales expected to begin in 2026.

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