October 8, 2026, (Inside AI) — Samsung Electronics has signaled an extraordinary surge in profitability, projecting a nine-fold increase in quarterly operating profit compared to the same period last year. The company estimates operating profit of 107.4 trillion won ($80 billion) for the three months ending September 2026, marking its fourth consecutive quarter of record earnings. The announcement, released today, underscores the massive financial impact of the AI-driven memory chip boom on the global semiconductor industry.
The forecast, disclosed in a preliminary earnings guidance, highlights how surging demand for high-bandwidth memory (HBM) and other advanced chips used in AI data centers has transformed Samsung's fortunes. The company, which ranks among the world's largest memory chip makers alongside South Korea's SK Hynix and America's Micron, supplies critical components for AI systems built by firms like NVIDIA. The projected profit dwarfs last year's figure, when Samsung reported operating profit of approximately 12 trillion won for the third quarter of 2025.
Memory Chips Drive Record Profits
At the heart of Samsung's success is its semiconductor business, particularly the Device Solutions (DS) division. Brokerage estimates cited by Korea Herald project revenue of around 201.7 trillion won for the quarter, representing roughly 134% year-over-year growth. Operating margins for the DS unit could reach between 72% and 75%, with DRAM margins potentially exceeding 80%. These figures reflect the pricing power Samsung wields amid a global shortage of AI-capable memory.
High-bandwidth memory (HBM) sales have been a standout performer. Samsung's HBM market share jumped from 21% in the first quarter to 33% in the second quarter, according to Counterpoint Research. The company's HBM4 chips are set to power NVIDIA's Vera Rubin AI accelerator in the second half of 2026. This design win positions Samsung as a key supplier for the next generation of AI training and inference systems.
Beyond memory, Samsung's consumer electronics division received a lift from the August launch of the Galaxy Fold and S26 smartphones. However, the company's foundry and System LSI divisions remain loss-making. Samsung's foundry head has targeted 2028 for a return to profitability in that segment, acknowledging the intense competition from TSMC and Intel.
The AI chip boom has reshaped Samsung's market standing. Earlier this year, the company's stock market valuation crossed $1 trillion for the first time, making it the first Korean company to reach that milestone. The stock has since continued to climb, buoyed by expectations of sustained demand.
Investment across the industry continues to accelerate. US tech giants including Google, Amazon, and Meta have pledged over $650 billion for AI projects this year. In June, South Korea unveiled at least $880 billion in chip manufacturing plans led by Samsung and SK Hynix. Rival firms in Japan, China, and Taiwan are similarly expanding their chip plants, signaling a global race to build AI infrastructure.
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Samsung will publish its full Q3 earnings at the end of October. The guidance comes as the company navigates a complex landscape: while memory chips are generating unprecedented profits, its foundry business lags behind competitors. Analysts will be watching whether Samsung can translate its memory dominance into broader semiconductor leadership.
