Samsung Electronics is expected to report another record quarterly operating profit, with strong demand for artificial intelligence (AI) technologies continuing to fuel a global shortage of memory chips and push prices sharply higher.
The South Korean technology giant is forecast to announce on Tuesday an operating profit of 86 trillion won (about $56.3 billion) for the April-June quarter, according to an LSEG SmartEstimate based on forecasts from 30 analysts. If confirmed, the result would represent an almost 18-fold increase from the 4.7 trillion won recorded during the same period last year and mark Samsung’s third consecutive quarter of record earnings.
Analysts attribute the strong performance to continued supply shortages in the memory chip market as demand from AI-related infrastructure expands faster than manufacturers can increase production. Industry experts expect supply constraints to persist through at least next year, supporting elevated prices for memory products.
While high-bandwidth memory (HBM), widely used in AI processors, has remained a major growth driver, demand has also strengthened for conventional DRAM and NAND memory chips. Analysts say the rise of agentic AI systems, which perform more advanced and multi-step tasks than earlier AI applications, is increasing demand for memory capacity in data centres and cloud computing infrastructure.
Samsung supplies memory chips to several major technology companies, including Nvidia, Google and Apple, placing it at the centre of the global AI supply chain.
According to Citi Research, average selling prices for DRAM rose 44 percent during the second quarter compared with the previous three months, while NAND prices climbed 53 percent. The sustained price increases have helped drive sharp gains in the share prices of leading memory manufacturers this year, with Samsung, SK Hynix and Micron all surpassing market valuations of $1 trillion.
Despite the favourable market conditions, analysts cautioned that Samsung’s reported earnings could be affected by accounting provisions related to employee bonuses. The company reached a wage agreement with semiconductor workers in May, allocating 10.5 percent of the division’s operating profit to special bonuses. Some analysts estimate the total bonus provision could exceed 40 trillion won, depending on when the company recognises the expense.
Investors are also watching for signs that the current AI investment boom can be sustained. JPMorgan noted that spending on AI memory now accounts for more than half of cloud service providers’ capital expenditure and is expected to rise further next year, raising questions about whether such investment levels can continue over the long term.
Samsung and SK Hynix recently announced plans to invest a combined 3,200 trillion won in expanding semiconductor production in South Korea. Samsung has said its investment will be spread between 2026 and 2040.
Samsung is expected to release its detailed quarterly financial results later this month. Analysts also noted that rising memory prices have increased production costs for Samsung’s smartphone business, with higher component expenses placing pressure on profit margins despite recent handset price increases. Further price adjustments may be considered during the second half of the year as the company seeks to offset rising costs.
