Samsung Electronics (KOSE: A005930) expects profits to almost triple in the final quarter of last year, setting a new record as soaring memory chip prices and artificial intelligence demand turbocharge its core semiconductor business.
South Korea’s biggest company told the market on Thursday that operating profit likely reached KR₩20 trillion (A$20.5 billion) in the three months to December, with consolidated revenue of around 93 trillion won, according to preliminary earnings guidance.
If confirmed, the result would eclipse Samsung’s previous quarterly profit record of ₩17.6 trillion set in 2018.
The sharp rebound marks a dramatic turnaround from a year earlier, when weak demand and falling chip prices weighed heavily on earnings.
This time, the catalyst is AI.
Memory chips used in data centres and AI servers are in short supply as companies such as Nvidia race to meet demand for advanced computing systems.
As manufacturers prioritise production for these high-margin applications, availability has tightened across the wider memory market, pushing prices sharply higher for chips used in smartphones, personal computers and other consumer devices.
Counterpoint Research said the memory market has entered what it described as a “hyper-bull” phase, surpassing the conditions seen during the last major peak in 2018.
The research firm estimates memory prices rose between 40% and 50% in the final quarter of 2025 and expects similar increases in the first quarter of 2026, followed by a further rise of around 20% in the second quarter.
Those dynamics have squeezed electronics manufacturers but delivered windfall gains for memory specialists such as Samsung, SK Hynix and Micron.
Despite its scale, Samsung continues to lag SK Hynix in high-bandwidth memory (HBM), a critical component in AI processors.
Expanding HBM capacity is expected to be a strategic priority this year as competition intensifies for supply contracts with leading chip designers.
Beyond semiconductors, Samsung used this week’s CES 2026 technology show in Las Vegas to outline its broader strategy, particularly in televisions, another pillar of its business.
At a Visual Display ‘Deep Dive’ session, the company said it aims to redefine the role of the TV as demand shifts towards premium models, larger screens and more intelligent features.
Samsung highlighted plans to embed advanced artificial intelligence across its television range while continuing to emphasise picture quality.
The company said 2026 would be a key year for its display unit, with Micro RGB and OLED anchoring the high-end segment, mini LED broadening access to premium technology and ultra-large screens driving more immersive home viewing.
Central to that strategy is a new platform called Vision AI Companion, designed to make televisions more personalised and interactive.
The system analyses viewing habits, anticipates user needs and delivers contextual information on screen, turning the TV into what Samsung describes as a more active part of the connected home.
Executives stressed that AI integration is intended to complement, rather than replace, Samsung’s long-standing focus on hardware performance.
The company also showcased a 130-inch Micro RGB television, positioning it as a technical milestone and a statement of intent in the ultra-premium category.
Samsung has now held the title of the world’s leading TV brand for 20 consecutive years.
With profits surging on the back of the AI chip boom and heavy investment under way across its product lines, the company is betting that scale, pricing power and technology leadership will keep it ahead in an increasingly competitive global market.
Despite a 0.99% one day share price pullback, Samsung share price recently displayed strong momentum, with a 90 day share price return of 47.88% and a 1 year total shareholder return of 153.77%.
