Samsung Electronics says it expects its quarterly profit to rise about nine times compared with a year ago. The company pointed to strong demand for memory chips used in artificial intelligence data centres.
The tech giant estimates operating profit for the three months to the end of September will reach 107.4 trillion won. That is about $80 billion, or £61 billion.
If confirmed, this would be Samsung's fourth quarter in a row of record earnings.
Some of South Korea's biggest companies release early earnings estimates to guide investors before full reports. These forecasts carry more weight than outside analyst estimates because they are based on internal company data.
AI Demand Drives Memory Chip Sales
Samsung is one of the world's largest memory chip makers. Its main rivals in this field are South Korea's SK Hynix and US-based Micron.
These companies make chips that are crucial for AI firms such as Nvidia. Global demand for chips that power AI development has lifted the earnings and shares of makers linked to the technology.
The surge in demand over recent years has led to a global shortage of semiconductors. This shortage has pushed up sales for firms like Samsung.
Samsung's stock market value crossed $1 trillion earlier this year.
The company is also one of the world's biggest smartphone makers. Its products include the Galaxy Fold and S26 phones.
Samsung is expected to get a further boost from its latest folding devices. These phones went on sale in August.
Heavy Investment Across the Chip Industry
Spending on AI has grown quickly. US tech giants Google, Amazon and Meta have pledged to put more than $650 billion into AI projects this year.
In June, South Korea announced plans for at least $880 billion in projects led by Samsung and SK Hynix. The aim is to expand the country's chip manufacturing in the coming years.
Rival firms in Japan, China and Taiwan are also spending heavily on new chip plants. They are responding to the same rise in AI demand.
The chip shortage has also affected what consumers pay. Firms including Samsung have raised prices, making products such as smartphones and computers more expensive.
The profit estimate covers Samsung's entire business, including chips, phones and other products. A full breakdown by division has not yet been released.
Samsung will publish its full third-quarter earnings at the end of October. That report is expected to give more detail on how each part of the business performed.
