Samsung Electronics is projected to report operating profit roughly 18 times higher than a year ago, reaching another record level for the April-June period, as artificial intelligence demand tightens memory chip supplies and lifts prices. On Tuesday the company is forecast to post operating profit of 86 trillion won, or about 56.35 billion dollars, for the quarter, according to an analyst consensus compiled by LSEG from 30 forecasts. That figure would be up sharply from 4.7 trillion won a year earlier and would mark the third straight quarter of record results, driven by a persistent shortage as AI infrastructure needs outstrip supply growth. Analysts expect the memory market to stay tight at least through next year. Growth stems from both high-bandwidth memory and rising orders for standard DRAM and NAND chips as AI tools, including agentic systems, spread across more computing tasks. These newer AI applications require extra memory and storage for complex, multi-step operations. Samsung supplies memory chips to major clients such as Nvidia, Google and Apple. Research from Citi indicates average selling prices for DRAM and NAND climbed 44 percent and 53 percent respectively from the prior quarter. The shortage has lifted share prices of leading memory makers, with Samsung, SK Hynix and Micron rising 158 percent, 273 percent and 242 percent this year and pushing each firm above one trillion dollars in market value. Some analysts warn that second-quarter results could miss expectations if Samsung records larger-than-anticipated provisions for employee bonuses tied to a recent wage agreement allocating 10.5 percent of semiconductor profit to special payments. Cumulative provisions may exceed 40 trillion won, and the timing of recognition could affect reported earnings. Full results are due later this month. Looking forward, the main risk is possible slowdowns in AI infrastructure spending. JPMorgan noted that while supply-demand balances remain tight, questions persist over whether AI memory’s rising share of cloud capital expenditure, seen at 52 percent this year and above 70 percent next year, can be sustained. Any cut in AI outlays could affect Samsung and SK Hynix, which recently announced plans to invest 3,200 trillion won in Korean chip capacity between 2026 and 2040. Investors want clearer proof that AI service advances will drive faster cloud and revenue growth to support higher memory spending. In April Samsung said it had signed multi-year supply contracts with unnamed customers. Nomura forecasts commodity DRAM prices will rise 24 percent and NAND prices 25 percent quarter-on-quarter in the current period on stronger demand from consumer products and data centers. Samsung’s mobile division meanwhile faces margin pressure as higher memory costs outweigh recent phone price rises, and further increases may be required in the second half.
