Published: 07 October 2026. The English Chronicle Desk. The English Chronicle Online.
Samsung Electronics is heading towards what could become one of its strongest quarterly performances in years, as the rapid expansion of artificial intelligence infrastructure continues to drive extraordinary demand for advanced memory chips.
The South Korean technology giant is expected to report a dramatic increase in operating profit for the third quarter of 2026, reflecting the powerful recovery of the global semiconductor market and the growing importance of memory technology in the development of AI data centres.
Analysts estimate that Samsung’s operating profit for the July-to-September period could reach about 106.1 trillion South Korean won. That would represent an increase of almost nine times compared with the 12.17 trillion won recorded during the same quarter a year earlier.
The projected rise highlights how quickly the economics of the semiconductor industry have changed. After a difficult period marked by weak demand and pressure on chip prices, manufacturers are now benefiting from heavy investment in AI computing infrastructure. Technology companies around the world are spending billions of dollars on data centres capable of training and operating increasingly sophisticated AI systems, creating an enormous requirement for high-performance memory.
For Samsung, the improvement is particularly significant because memory chips remain at the centre of its semiconductor business. High-performance products are increasingly essential to the operation of AI accelerators and advanced computing systems, allowing enormous quantities of data to be processed rapidly.
Demand for memory has remained above available supply for more than a year, contributing to a prolonged shortage in parts of the market. Chip manufacturers have warned that tight supply conditions could continue through next year and potentially into 2028, depending on the pace of AI investment and the expansion of manufacturing capacity.
The shortage has helped manufacturers increase prices and improve profitability. However, there are signs that the pace of price increases is beginning to moderate. That could limit the extent to which Samsung’s memory division can continue expanding its margins at the same speed seen during earlier stages of the recovery.
Analysts expect Samsung’s operating margin in its memory business to be around 76 per cent during the third quarter, broadly unchanged from the previous quarter. While such a margin remains exceptionally strong, the stability rather than a further sharp increase suggests that some of the most dramatic pricing gains may already have passed.
Market research firm TrendForce expects conventional DRAM contract prices to increase by between 10 and 15 per cent in the fourth quarter compared with the third quarter. The projected increase is considerably slower than the roughly 60 per cent rise recorded in the second quarter, illustrating how the semiconductor market is moving from an explosive price recovery towards a more balanced phase.
Even with slower price growth, the underlying demand outlook remains strong. The expansion of AI data centres has changed the traditional relationship between chip manufacturers and major technology customers. Large cloud companies and AI developers require reliable access to memory products, while chipmakers are attempting to expand production without creating another period of oversupply.
Higher memory prices, however, are creating challenges for manufacturers of smartphones, computers and other electronic products. Memory is an important component in a wide range of consumer devices, meaning higher chip costs can eventually feed into production expenses throughout the electronics industry.
Manufacturers that purchase memory chips must therefore balance their need for components with pressure to control costs. Long-term supply agreements between chip producers and major customers are becoming increasingly common, providing greater certainty for both sides but potentially limiting the opportunity for manufacturers to raise prices sharply whenever demand strengthens.
One of the most important developments for Samsung is its growing position in high-bandwidth memory, or HBM, a specialised form of memory that has become essential to AI data-centre infrastructure.
HBM allows processors to access large volumes of data at extremely high speeds. Its ability to support demanding computational workloads has made the technology a critical component in advanced AI systems, particularly those built around high-performance accelerators.
Samsung previously trailed rival South Korean chipmaker SK Hynix in the HBM market. The company has been working aggressively to close that gap, increasing supplies of newer-generation products and investing in technology designed to meet the requirements of major AI customers.
The competition between the two companies has become increasingly important as HBM moves from a specialised semiconductor product to one of the most strategically valuable components of the AI hardware supply chain.
Samsung is expected to increase its market presence significantly through its newer HBM4 products. JPMorgan estimates that Samsung’s share of the HBM market could rise from about 20 per cent to 34 per cent this year.
At the same time, SK Hynix’s share is projected to decline from approximately 60 per cent to 46 per cent. If those estimates prove accurate, the figures would represent a major shift in the competitive landscape and demonstrate Samsung’s progress in one of the fastest-growing segments of the semiconductor industry.
The potential change is important beyond Samsung itself. AI companies are increasingly dependent on a small group of chip manufacturers for the specialised memory required by advanced computing systems. Any improvement in Samsung’s ability to supply HBM could therefore have implications for the broader availability of AI hardware.
Samsung’s expected record profit also reflects the broader transformation of the global technology industry. Artificial intelligence has become a major investment priority for governments, cloud providers, technology companies and investors. Massive data centres are being constructed or expanded in several parts of the world, requiring advanced processors, memory, networking equipment and energy infrastructure.
This investment has created a new cycle of demand for semiconductors. Unlike previous technology booms that were driven largely by consumer electronics, the current cycle is heavily influenced by enterprise computing and AI infrastructure. That distinction could help sustain demand even if smartphone and personal computer sales remain relatively modest.
Nevertheless, Samsung still faces risks. Semiconductor markets are highly cyclical, and large increases in manufacturing capacity can eventually produce excess supply. If AI investment slows or customers reduce orders, chip prices could come under pressure again.
Geopolitical tensions, export restrictions, changes in technology policy and uncertainty surrounding global economic growth could also influence Samsung’s performance. The company must simultaneously invest heavily enough to capture the AI boom while avoiding excessive capacity that could weaken prices in a future downturn.
For now, however, the outlook remains favourable. Samsung’s projected third-quarter performance suggests that the semiconductor recovery has developed into a powerful profit engine, while the company’s efforts to strengthen its HBM position could provide an additional source of growth.
The company is scheduled to release preliminary third-quarter financial results on Thursday, with more detailed figures expected towards the end of October. Those results will offer a clearer picture of how much of Samsung’s projected earnings surge has come from memory pricing, AI-related demand and improvements across its wider business.
The figures will also provide an important indication of the direction of the global semiconductor industry. If Samsung confirms exceptionally strong earnings and continued momentum in advanced memory, it would reinforce the view that AI is reshaping the chip market on a scale comparable with some of the biggest technology investment cycles of the past.
For consumers and technology manufacturers, the consequences could be more complicated. Strong demand is good news for semiconductor producers, but sustained shortages and higher memory prices could increase costs across the electronics supply chain. For Samsung, however, the immediate picture is much brighter: AI-driven demand has transformed memory chips from a source of cyclical pressure into one of the company’s most powerful engines of growth.




























































































