Samsung Set to Post Best Quarterly Profit Since 2018 as DRAM Chip Prices Soar in 2026
- Why Is Samsung's Profit Projected to Jump 160%?
- How Did the Chip Shortage Create This Windfall?
- What's Behind Samsung's Remarkable Turnaround?
- Are There Clouds on Samsung's Horizon?
- What Does 2026 Hold for Samsung?
- Frequently Asked Questions
In what analysts are calling a "phoenix moment" for the tech giant, Samsung Electronics is poised to announce its most profitable quarter in eight years, riding the wave of unprecedented DRAM chip price surges. According to industry experts, this turnaround story combines semiconductor shortages, AI boom dynamics, and some clever corporate maneuvering that's got investors buzzing.
Why Is Samsung's Profit Projected to Jump 160%?
The numbers tell a stunning story: Samsung expects a 160% year-over-year increase in operating profit for October-December 2025, potentially reaching ₩16.9 trillion ($11.7 billion). This WOULD mark their best performance since mid-2018's ₩17.6 trillion record. The driving force? A perfect storm in the memory chip market where DDR5 DRAM prices skyrocketed 314% annually in Q4, according to TrendForce data. "Samsung's production focus on conventional DRAM gives them disproportionate gains in this environment," notes Avril Wu, TrendForce analyst.
How Did the Chip Shortage Create This Windfall?
Here's where it gets interesting. While competitors rushed to produce AI-specific processors, Samsung maintained significant conventional DRAM capacity. Now, with both AI and traditional computing demanding memory, prices for standard chips have entered what one trader called "stratospheric territory." Current projections suggest another 55-60% price hike this quarter. "We're seeing allocation battles not seen since the 2021 supply chain crisis," remarks BTCC market analyst David Lin.
What's Behind Samsung's Remarkable Turnaround?
Just twelve months ago, CEO Jun Young-hyun was publicly apologizing for financial underperformance as Samsung lost ground to SK Hynix in advanced AI chips. Their stock's 125% rebound in 2025 - the strongest annual gain since 1999 - tells a different story today. Jun recently boasted to clients about their next-gen HBM4 memory chips with a simple message: "Samsung is back!" While he didn't name clients, industry whispers suggest progress supplying Nvidia, potentially eating into SK Hynix and Micron's market share.
Are There Clouds on Samsung's Horizon?
Not everyone's popping champagne. BNK Investment's Lee Min-hee cautions that soaring chip costs may hurt PC and smartphone markets, while AI data center demand could slow as many operators rely on debt financing. Samsung's mobile division already feels the pinch - rising component costs squeeze margins in their second-largest revenue stream. Mobile chief TM Roh admitted to Reuters they're "navigating uncharted waters" regarding supply challenges.
What Does 2026 Hold for Samsung?
Analysts project operating profit could double this year, surpassing ₩100 trillion as chip prices offset slowing phone growth. With Nvidia's Jensen Huang announcing full-scale production of next-gen chips (likely using Samsung's HBM4), the memory Maker appears well-positioned. But as one veteran trader quipped, "In semiconductors, today's shortage is tomorrow's glut." Samsung will release preliminary figures this Thursday, giving markets their first official look at this remarkable recovery.
Frequently Asked Questions
How much is Samsung's profit expected to grow?
Samsung's Q4 2025 operating profit is projected to increase 160% year-over-year to ₩16.9 trillion ($11.7 billion), potentially reaching their highest quarterly profit since 2018.
What's driving Samsung's profit surge?
The dramatic increase comes primarily from soaring DRAM chip prices (up 314% annually for DDR5) due to production shifts toward AI processors creating shortages in conventional memory chips.
How does this compare to Samsung's recent performance?
This marks a dramatic turnaround from 2024 when Samsung trailed competitors in AI chips, with their stock rebounding 125% in 2025 - the biggest annual gain in 26 years.
