Samsung Electronics is poised to report its highest third-quarter profit in three years, fueled by soaring demand for artificial intelligence (AI) infrastructure and a sharp rebound in memory chip prices. The strong performance reflects a significant recovery in the global semiconductor market following a prolonged industry slump.
AI Boom Revives Memory Chip Market
Analysts expect Samsung’s Q3 operating profit to hit its strongest level since 2021, supported by robust orders from AI-focused data centers and cloud service providers. The company’s memory division — its core profit driver — has seen rising demand and prices for DRAM and NAND chips, essential components in AI model training and high-performance computing.
“The AI boom has fundamentally shifted demand in the semiconductor sector,” noted a Seoul-based market analyst. “Samsung is well-positioned to capitalize, especially as hyperscalers and data center operators continue expanding capacity for AI workloads.”
High-Bandwidth Memory Leads Growth
One of the most significant growth drivers has been the surge in sales of high-bandwidth memory (HBM) chips, which power advanced processors for large language models and generative AI systems. Samsung, alongside competitors SK Hynix and Micron, is ramping up production of next-generation HBM3 and HBM3E memory to meet rising global demand.
Diversified Divisions, Cautious Optimism
Favorable pricing has helped Samsung offset weaker performance in its smartphone segment and challenges in global consumer spending. Its foundry and display businesses saw moderate growth, while mobile sales remained under pressure from competition and shifting market trends.
Despite the strong results, Samsung maintains a cautious outlook, citing potential risks from geopolitical tensions, export restrictions on chipmaking equipment, and demand fluctuations in the broader electronics market.
AI Demand Drives Long-Term Recovery
The expected Q3 results mark a major turnaround from the 2022 memory chip downturn, when weak global demand and excess inventory slashed profits. Now, with AI-driven demand accelerating, analysts forecast continued growth through 2026, positioning Samsung as a key player in the rapidly evolving semiconductor ecosystem.
As the global AI race intensifies, Samsung’s strategic partnerships with chip designers and AI developers further strengthen its foothold in next-generation computing. The company’s renewed momentum cements its reputation as one of the world’s most influential semiconductor and technology leaders.
