Samsung Set to Report 160% Profit Surge as AI Boom Drives Chip Price Rally
Samsung Electronics is expected to announce a 160 per cent jump in its fourth-quarter operating profit, fuelled by a global chip shortage and soaring demand for artificial intelligence hardware. Analysts say the rebound marks one of the strongest quarters for the world’s largest memory chip maker since 2018, reflecting how the AI boom has transformed the semiconductor market.
Chip Shortage Pushes Profits to Multi-Year High
According to LSEG SmartEstimate data compiled from 31 analysts, Samsung’s October–December operating profit is projected at 16.9 trillion won (11.7 billion US dollars), up from 6.49 trillion won a year earlier. If confirmed, it would be Samsung’s best quarterly performance since the third quarter of 2018, when it posted a record 17.6 trillion won profit.
Some analysts, citing stronger-than-expected memory chip prices, now expect profits to exceed 20 trillion won for the period. Samsung will release its official estimates for revenue and operating profit on Thursday.
The surge comes as the semiconductor industry experiences one of its tightest supply cycles in years. Prices for DDR5 DRAM chips rose 314 per cent in the fourth quarter compared with the same period last year, according to market researcher TrendForce, which also forecasts a further 55 to 60 per cent increase in the current quarter.
TrendForce analyst Avril Wu noted, “As conventional DRAM prices continue to surge, Samsung – whose production capacity is largely concentrated in this segment – stands to gain relatively more from the current price upcycle.”
AI Boom Reshapes Semiconductor Landscape
Samsung’s resurgence follows a difficult period for the company. Just over a year ago, CEO Jun Young-hyun apologised for weak results as the firm lagged rival SK Hynix in supplying high-end memory chips to Nvidia, the dominant player in AI processors. Since then, Samsung shares have rebounded sharply, climbing 125 per cent in 2025 — the company’s strongest annual gain in 26 years.
Jun recently said customers have praised the performance of Samsung’s latest high-bandwidth memory (HBM4) chips, adding that several clients have told the company, “Samsung is back.” Analysts believe the firm is regaining ground in supplying advanced chips to Nvidia, which is preparing to launch its Vera Rubin AI platform later this year using HBM4 memory.
Outlook: Record Annual Profits but Growing Risks
Analysts predict Samsung’s annual operating profit could more than double in 2026, surpassing 100 trillion won, as the chip price rally continues. However, some have warned that surging semiconductor costs could dampen demand for PCs, smartphones, and AI data centres, which increasingly rely on debt to fund investments.
BNK Investment & Securities analyst Lee Min-hee cautioned that while Samsung is benefiting from the AI-driven price boom, “there are risks of a demand slowdown as high prices eventually weigh on end-user markets.”
Meanwhile, Samsung’s co-CEO TM Roh acknowledged that rising chip costs are pressuring margins in its smartphone division, the company’s second-largest business. “As this situation is unprecedented, no company is immune to its impact,” he said, adding that Samsung is taking steps to minimise the effect.
with inputs from Reuters
