Samsung’s Profit Set to Soar to $66 Billion Amid Chip Demand

UPDATE: Samsung Electronics is on track for a staggering $66 billion operating profit in 2026, more than double its previous year’s earnings. This forecast comes as global demand for memory chips skyrockets, according to a report from South Korean brokerage firm KB Investment & Securities released today.

The company reported an operating income of $16 billion for the first nine months of 2023, with projections suggesting that this figure could exceed $13 billion in just the fourth quarter. Notably, Samsung’s semiconductor division is anticipated to contribute nearly 80% of its overall earnings in the final quarter of the year.

According to Kim Dong-won, head of research at KB Investment, “As general-purpose memory prices have risen more than 50% this month, Samsung Electronics is predicted to log a record operating profit approaching $14 billion in the fourth quarter.” The data underscores the explosive growth in the memory chip market, driven by increasing demand from sectors such as artificial intelligence and supercomputing.

Samsung has been catching up to its local rival, SK hynix, particularly in the high-bandwidth memory (HBM) segment, which is crucial for advanced computing applications. The company is expected to pass quality certification for its next-generation HBM4 sooner than anticipated, potentially by the end of this year. This development marks a significant stride as Samsung continues to close the gap in the competitive landscape.

Additionally, Samsung confirmed that tech giant Nvidia is currently testing the HBM4 for a possible partnership, indicating strong prospects for collaboration in the rapidly evolving tech market.

IMPACT: The market is reacting positively to these forecasts, with Samsung’s share price rising 3.52% on the Seoul bourse today. Analysts also speculate that a portion of the expected profit increase may be utilized for share buybacks, aimed at enhancing the company’s stock value further.

As Samsung gears up for an unprecedented year ahead, investors and industry watchers alike will be keenly observing how these developments unfold. With chip demand showing no signs of slowing down, Samsung’s strategic moves in the semiconductor sector will be crucial in defining its market position in 2026 and beyond.

Stay tuned for more updates as this story develops.