Samsung Electronics is poised for a remarkable financial performance in the final quarter of last year, with projections indicating a threefold increase in profits and a new all-time high for operating profit. The South Korean tech behemoth anticipates an operating profit of 20 trillion won and consolidated sales around 93 trillion won for the fourth quarter, according to its latest earnings guidance.
This forecast represents a substantial leap from the previous year and is set to surpass Samsung’s previous record of 17.6 trillion won, established in the third quarter of 2018. The surge in profitability is largely attributed to the booming demand for memory chips essential for artificial intelligence applications, a sector experiencing unprecedented growth.
The insatiable appetite for AI and server capacity has created a “Hyper-Bull” phase in the memory market, as noted by Counterpoint Research. This heightened demand has led to a significant strain on supply, with chipmakers like Nvidia actively seeking limited quantities of specialized memory chips. The prioritization of capacity for these high-demand AI chips has, in turn, contributed to shortages across the broader semiconductor market, impacting the availability of chips for personal computers and mobile devices.
Market analysts predict a substantial increase in memory prices, estimating a surge of 40%-50% in the final quarter of 2025. Projections suggest similar gains in the first quarter of 2026, followed by a more moderate rise of approximately 20% in the second quarter.
While these market dynamics present cost challenges for many consumer electronics manufacturers, they have proven to be a significant boon for memory chip giants such as Samsung, along with its key competitors, SK Hynix and Micron. Samsung’s stock performance reflects this positive trend, with shares experiencing a gain of over 145% in the past twelve months.
Despite its strong overall performance, Samsung continues to play catch-up with SK Hynix in the crucial segment of high-bandwidth memory (HBM) chips, which are integral to advanced AI processors like those developed by Nvidia. Expanding its HBM production capacity is expected to be a paramount focus for Samsung in the upcoming year as it seeks to capture a larger share of this lucrative market.
Samsung is slated to release its audited financial results and conduct its quarterly earnings call later this month, providing further insights into its strategic direction and market outlook.
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