Seoul, Jul 07 (V7N) — Surging global demand for high-performance memory chips, fueled by the rapid expansion of artificial intelligence (AI), has put South Korean technology giant Samsung Electronics on course for one of the strongest quarterly performances in its history.

In its preliminary earnings guidance released on Tuesday, Samsung projected that its operating profit for the April–June quarter would be approximately 58 billion Korean won (as stated in the company's guidance), representing an increase of nearly 19 times compared with the same period last year.

The company also reported a sharp rise in revenue, estimating second-quarter sales at around 171 trillion Korean won, more than double the figure recorded in the corresponding quarter of last year.

Samsung noted that this marks its third consecutive quarter of exceptionally strong earnings and ranks among the highest quarterly operating profits in the company's history.

As is customary, the South Korean technology giant released the preliminary earnings guidance ahead of its full financial report, which is scheduled to be published later this month.

Industry analysts attribute the strong performance to soaring demand for advanced semiconductor memory used in AI applications. They say the rapid global adoption of generative AI has significantly increased demand for high-performance chips, while limited production capacity has created a supply shortage, driving prices sharply higher.

Mark Einstein, an analyst at market research firm Counterpoint Research, described Samsung's latest earnings forecast as one of the company's best quarterly performances on record.

"This is entirely the effect of the AI boom. Memory chip manufacturers are benefiting from unprecedented demand amid constrained supply," he said.

Samsung, one of the world's largest semiconductor manufacturers, supplies advanced chips to major technology companies, including Nvidia and Google, both of which have expanded AI-related operations in recent months.

The AI-driven semiconductor boom has also boosted investor confidence. Samsung's share price has more than doubled since the beginning of the year, while shares of fellow South Korean memory chip manufacturer SK Hynix have surged by more than 200 percent.

The strong performance of the semiconductor sector has also lifted South Korea's broader stock market. The benchmark Kospi Index has gained more than 80 percent this year, largely driven by the impressive performance of major chipmakers.

Analysts believe demand for advanced AI memory chips will remain strong as artificial intelligence continues to expand across industries worldwide, supporting sustained revenue and profitability for leading semiconductor companies such as Samsung.

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