Samsung Electronics expects operating profit of 107.4 trillion won ($80bn; £61bn) for the three months to the end of September — a nine-fold jump from a year earlier and its fourth consecutive quarter of record earnings.

The South Korean giant, one of the world's largest memory chip makers alongside local rival SK Hynix and US-based Micron, attributed the surge to demand for memory chips used in AI data centres. Those chips are crucial suppliers to AI firms such as Nvidia. Samsung also expects a boost from its latest folding devices, launched in August alongside its Galaxy S26 smartphone line.

The figure is a company guidance preview, not a final result. Full third-quarter earnings will be published at the end of October. Some of South Korea's largest companies release earnings previews to advise investors ahead of detailed reports, and these forecasts carry more credibility than external analyst estimates because internal company data backs them.

What is driving the record numbers?

Global demand for chips that power AI development has lifted earnings and share prices across the technology supply chain. Demand in recent years has produced a worldwide semiconductor shortage, pushing up sales for manufacturers like Samsung — whose stock market valuation crossed $1tn (£757bn) earlier this year.

The shortage has also given Samsung and its peers pricing power. The company has raised chip prices, a move that filters through to consumer products: smartphones and computers have become more expensive as a result.

How big is the investment wave behind it?

The earnings surge rests on an unusually heavy capital cycle:

• US tech giants including Google, Amazon and Meta have pledged more than $650bn into AI projects this year.
• In June, South Korea unveiled plans for at least $880bn in projects led by Samsung and SK Hynix to expand the country's chip manufacturing capabilities over the coming years.
• Rival firms in Japan, China and Taiwan are investing heavily in chip plants as AI demand keeps climbing.

That concentration of spending explains why memory makers hold pricing leverage: buyers are competing for constrained capacity while hyperscalers fund record buildouts.

What happens next?

Samsung's preview, backed by internal data rather than analyst modelling, sets a high bar for the full results due at the end of October. With the global chip shortage persisting and Samsung already raising prices, the competitive dynamics among Samsung, SK Hynix and Micron suggest elevated memory pricing — and costlier end devices — will persist into coming quarters.