Record profits forecast for Samsung with dramatic increase in AI chip demand (www.techradar.com)

Samsung has announced a projected operating profit of around 20 trillion won for the next quarter, largely driven by a significant increase in demand for memory chips, particularly for AI servers. This forecast marks a potential record for the company, aiming to surpass its previous high of 17.6 trillion won achieved in 2018. Analysts expect that approximately 17 trillion won of this profit will originate from chip sales, as DRAM contract prices have skyrocketed by 313% year-over-year, with forecasts indicating further increases of 55-60% this quarter. This surge in chip demand is particularly important for the AI/ML community, as it highlights the growing need for advanced memory solutions to support AI infrastructure development. Samsung, along with competitors like SK Hynix and Micron, is ramping up fabrication plans to meet this demand while still catering to the traditional consumer markets. However, the elevated prices could pose challenges for smartphone and PC markets, potentially leading to contraction if costs remain unsustainable. Despite a recent dip in share prices following the announcement, Samsung's continued innovation and capture of nearly 19% of the global smartphone market signal a robust future in the tech landscape.