Samsung expects record operating profit driven by artificial intelligence chip demand

Samsung Electronics announced it expects a ninefold surge in quarterly profits compared with the previous year, according to BBC News. The company estimated that its operating profit for the three months ending in September will reach 107.4 trillion won, which is about 80 billion dollars. This marks the fourth consecutive quarter of record earnings for the firm. [1]

BBC News reported that the profit surge is driven by strong demand for memory chips used in artificial intelligence data centres. Samsung ranks among the largest memory chip manufacturers in the world alongside Micron in the United States and local competitor SK Hynix. These companies produce hardware that is vital for artificial intelligence firms such as Nvidia. [1]

The company also anticipates financial growth from its newest folding mobile devices that launched in August, BBC News reported. Samsung manufactures the Galaxy Fold and S26 smartphone lines. [1]

Samsung Group is a South Korean multinational manufacturing conglomerate headquartered in the Samsung Town office complex in Seoul. It is the largest chaebol in South Korea. The business was originally established as a trading firm in 1938 by founder Lee Byung-chul before expanding into manufacturing. [2][3]