Seoul — Samsung Electronics’ semiconductor division is expected to report a profit that could be up to 18 times higher than a year earlier, driven by soaring demand for memory chips used in artificial‑intelligence (AI) applications, according to a Reuters analysis of the company’s upcoming earnings.
The projected earnings boost follows a recent trend in which AI workloads are increasing the need for high‑capacity, high‑speed DRAM and NAND flash memory. Analysts cited in the Reuters report say the surge reflects “the AI‑fueled memory craze,” positioning Samsung to “make bank” as AI deployments accelerate across data centers, cloud services and edge devices.
Samsung’s chipmaking unit posted its first monthly profit in three years earlier this month, a milestone that underscores the turnaround in a segment that had been under pressure from oversupply and weaker consumer demand. The rebound aligns with broader market optimism, as investors in semiconductor stocks anticipate continued growth from AI‑related workloads.
Analysis:
If Samsung’s profit does indeed climb 18‑fold, the result would mark a dramatic reversal for its memory business, which has faced cyclical downturns in the past. The magnitude of the jump suggests that AI is reshaping the revenue composition of memory manufacturers, shifting focus from traditional consumer electronics to enterprise‑grade AI infrastructure. This shift could incentivize Samsung to prioritize capacity expansion and advanced process technologies for AI‑optimized memory, potentially widening the gap with rivals that are slower to adapt.
However, the estimate is based on market expectations rather than disclosed company figures, and actual results could vary depending on factors such as global chip inventory levels, pricing pressures, and the pace of AI adoption. Investors should watch Samsung’s forthcoming earnings release for concrete data on revenue, profit margins and guidance.
Sources
– Reuters, “Samsung likely to post 18‑fold jump in profit on surging AI demand for memory,” Google News India – Business feed. https://news.google.com/rss/articles/CBMiuwFBVV95cUxQdGJMNzJxUHljaTQ1aDhlVHRYUEQ5WVZOX0xOallVeUNlR0E2cHFSeEh6S2tzZ0VWXzdrY1B3czNRanpQTk5fNmhtTlE0TmtiYmRwOE9VQ05Cd2VaSVpIY2pVa29YM3FLQ0ZIOXNUVGxyUGdaNjNlQUZSOXVibEZYalk0a0pnbWlvc0pSaGd1bVdSUXl0NVpNNlMzMF84RkZJQ0hyMWxQUnA2Tjh2b0RhZW5Yb0M4d1Y0cVdr?oc=5
Story synopsis gathered from: Google News India – Business — source
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