Samsung expects record Q4 profits due to surging AI chip demand

Samsung Electronics is heading into a potentially flourishing period, as investors anticipate a sharp improvement in the company’s financial performance.

According to earnings guidance, Samsung expects its Q4 results to close with a 208% increase in operating profit compared to the same period last year, signaling a strong recovery after a weaker cycle.

The company projects sales of approximately 93 trillion won and an operating profit of around 20 trillion won, which would represent a record-high quarterly performance.

This surge is largely driven by robust global demand for artificial intelligence-related semiconductors, combined with tight supply conditions that have pushed chip prices upward. Samsung’s memory and semiconductor businesses, in particular, have benefited from the AI boom, strengthening its overall profitability outlook.

Beyond earnings, Samsung may also see renewed momentum in its foundry business. According to industry officials, Qualcomm has begun discussions with Samsung Electronics to manufacture its next-generation application processor using Samsung’s advanced 2-nanometer process.

In fact, if these talks lead to a finalized agreement, it would mark Samsung’s first production of a Qualcomm application processor in five years.

Qualcomm previously relied on Samsung’s foundry services for its application processors until 2021, after which it shifted production to Taiwan Semiconductor Manufacturing Company (TSMC). The move was reportedly driven by Samsung’s difficulty at the time in fully meeting Qualcomm’s technical performance requirements. A renewed partnership would therefore signal improved confidence in Samsung’s cutting-edge manufacturing capabilities and could strengthen its competitive position against TSMC in the advanced chipmaking market.

Taken together, strong earnings expectations and the possibility of a major foundry deal underscore Samsung’s improving outlook, as the company seeks to capitalize on the global AI-driven semiconductor boom while reasserting itself as a key player in next-generation chip production.

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