Samsung Electronics expects its quarterly operating profit to rise nine-fold from a year earlier, driven by strong demand for memory chips used in artificial intelligence (AI) data centres.
The South Korean technology giant estimates operating profit for the three months to the end of September at 107.4tn won (£61bn; $80bn).
If confirmed, it would mark Samsung’s fourth consecutive quarter of record earnings.
Samsung is one of the world’s largest memory chipmakers, alongside South Korea’s SK Hynix and US-based Micron. Their chips are widely used by AI companies, including Nvidia.
Samsung is also expected to benefit from sales of its latest foldable smartphones, launched in August. The company makes the Galaxy Fold and S26 smartphones.
Samsung will publish its full third-quarter results at the end of October.
Major South Korean companies often release preliminary earnings figures ahead of their full results to give investors an early indication of their performance. The forecasts are generally viewed as more reliable than external analyst estimates because they are based on internal company data.
Global demand for chips used to develop and run AI systems has surged in recent years, lifting the earnings and share prices of manufacturers linked to the technology.
The increase in demand has contributed to a global semiconductor shortage, pushing up sales for companies such as Samsung. Its stock market valuation crossed $1tn (£757bn) earlier this year.
Investment in the semiconductor industry has also increased sharply. US technology giants including Google, Amazon and Meta have pledged more than $650bn in AI investment this year.
South Korea unveiled plans in June for at least $880bn in projects led by Samsung and SK Hynix to expand the country’s chip manufacturing capacity in the coming years.
Japan, China and Taiwan are also investing heavily in new chip plants as demand for AI technology continues to grow.
The chip shortage has allowed manufacturers including Samsung to raise prices, contributing to higher costs for products such as smartphones and computers.
Erizia Rubyjeana
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