Samsung Electronics forecasts near three-fold profit jump as memory prices surge

Seoul: Samsung Electronics has forecast a sharp jump in quarterly profits, driven by soaring memory chip prices amid strong demand linked to artificial intelligence and data centres.

The South Korean technology group said it expects operating profit of around 20 trillion won for the final quarter of 2025, nearly three times higher than a year earlier. Consolidated revenue is projected at approximately 93 trillion won, according to preliminary earnings guidance released on Wednesday.

If confirmed, the figure would surpass Samsung’s previous quarterly operating profit record of 17.6 trillion won, set in the third quarter of 2018, marking a significant turnaround for the world’s largest memory chipmaker.

AI demand tightens supply

The surge in profitability reflects a steep rise in memory prices as chipmakers race to meet demand from companies developing artificial intelligence systems.

Producers of AI processors, including Nvidia, have been competing for limited supplies of advanced memory chips. As manufacturers prioritise production for data centres and AI workloads, shortages have spread across the broader memory market, affecting components used in personal computers and smartphones.

Research firm Counterpoint Research said the memory sector has entered what it described as a “hyper-bull” phase, with pricing conditions exceeding those seen during the previous cycle peak in 2018.

The firm estimates that memory prices rose by 40% to 50% in the fourth quarter of 2025 and expects further increases in early 2026, before moderating later in the year.

Gains for memory leaders

While higher chip prices have pushed up costs for many consumer electronics manufacturers, they have benefited leading memory suppliers.

Samsung’s main competitors in the sector, SK Hynix and Micron, have also reported improved pricing conditions as demand for advanced memory outstrips supply.

Samsung’s shares have risen more than 145% over the past 12 months, reflecting investor optimism about the company’s recovery and exposure to the AI-driven chip cycle.

HBM remains a key challenge

Despite the strong outlook, Samsung continues to lag SK Hynix in high-bandwidth memory, a specialised form of chip critical for AI accelerators and advanced processors.

Expanding production capacity in this segment is expected to be a strategic priority for Samsung in the year ahead, as competition intensifies to secure long-term supply agreements with major AI chip designers.

Samsung is scheduled to publish its audited earnings and hold its quarterly results briefing later this month, which is expected to provide further detail on pricing trends and investment plans.