Seoul – Samsung Electronics is poised to report a substantial surge in fourth-quarter profits, fueled by soaring demand for memory chips essential for artificial intelligence applications. The South Korean technology giant is expected to announce a operating profit jump of approximately 160%, according to reports.
The dramatic increase reflects a broader trend within the semiconductor industry, where a severe chip shortage has driven up prices, particularly for the high-performance memory crucial for AI servers and data centers. This resurgence marks a significant turnaround for the memory industry, which has experienced volatile cycles in recent years. Sector valuations have risen sharply, with Samsung shares increasing by roughly 130% since early September.
The earnings report, scheduled for release alongside SK Hynix on , is expected to highlight the intensifying competition between the two South Korean firms in the AI memory market. Both companies are benefiting from the increased demand and rising prices, but attention is focused on Samsung’s efforts to close the gap with SK Hynix in the production of high-bandwidth memory (HBM), a critical component for AI accelerators.
Samsung is currently developing its next-generation HBM4, intended for integration with Nvidia’s upcoming Rubin processors. The company is reportedly nearing certification from Nvidia for its latest AI memory chip, a development viewed as a key milestone given Samsung’s substantial global DRAM capacity. Securing Nvidia’s approval would signal a significant advancement in Samsung’s ability to compete in this crucial segment of the AI hardware supply chain.
The current market conditions are being described as a “supernormal profit environment” by Goldman Sachs Asia Pacific equity strategist Timothy Moe, who points to a record supply shortfall in both DRAM and NAND flash memory. This shortage is granting chipmakers considerable pricing power, a situation that could persist throughout and potentially into , particularly if the adoption of artificial intelligence continues to expand across various industries.
As of , Samsung Electronics’ stock was trading at ₩152,100, up 1.9% over the past week and 30.0% over the past month. The stock has delivered triple-digit returns over the past one, three and five years. However, analysts indicate the current price sits approximately 9% below the consensus target of ₩166,387, with a wide range of estimates between ₩77,000 and ₩240,000. Some assessments suggest the shares are trading at approximately 31.3% above estimated fair value, indicating a potentially overvalued status.
Beyond memory chips, Samsung is also expanding its AI capabilities into other areas. At CES 2026, the company unveiled the AI Promoter, an AI-powered interactive solution for exhibitions. This system provides real-time multilingual conversations and integrates with Samsung’s Spatial Signage to create immersive experiences for visitors. The launch of the AI Promoter is seen as part of a broader strategy to integrate AI into Samsung’s hardware, software, and display technologies.
The surge in Samsung’s profitability comes amid a wider discussion about the potential of AI stocks. While the initial hype surrounding AI has begun to subside as drew to a close, investors are increasingly focusing on companies that are delivering tangible products and addressing genuine market needs. The focus is shifting from speculative concepts to companies with demonstrated revenue and market demand.
Analysts project an average 12-month price target for Samsung Electronics of ₩193,661, with a high estimate of ₩275,000 and a low estimate of ₩135,000. The stock is receiving positive signals from both short and long-term moving averages, suggesting a favorable forecast. The company is also included in discussions about potential “millionaire-maker” AI stocks, alongside other established tech companies.
The positive outlook for Samsung is also reflected in broader market trends. The company is among the largest companies in emerging markets, alongside Tencent, and is considered a key player in the global AI landscape. The current environment suggests continued growth potential for Samsung as it navigates the evolving AI market.
