Samsung Forecasts Nearly Ninefold Profit Surge as AI Memory Prices Soar

Samsung anticipates a nearly ninefold surge in profit due to soaring demand for AI memory, which is driving up chip prices and putting strain on enterprise hardware budgets. The South Korean tech giant expects a record quarterly profit of 107.4 trillion won (about $80 billion), representing a staggering 783% increase from the previous year.

The forecast, released on October 8, is fueled by rising memory prices and strong AI-related demand. This boom benefits chipmakers but creates cost pressures for businesses purchasing servers, expanding data centers, and upgrading storage systems. Samsung also projected a 127% increase in revenue, estimating 195 trillion won for the quarter.

Analysts predict memory chips will drive most of the profit increase, with high-bandwidth memory (HBM) being a major growth driver. Conventional DRAM and NAND flash prices have also risen due to strong server demand and limited manufacturing capacity. Micron has warned that memory and storage demand could outpace supply through 2027 and 2028, causing shortages.

Despite Samsung's forecast, its shares fell about 2.4% on October 8, as the projected profit fell short of the 112.73 trillion won analyst consensus. The higher component costs may influence server configurations, storage expansions, and PC refresh cycles, affecting consumer electronics pricing as well.