Samsung’s Profit Set to Surge to $66 Billion by 2026

URGENT UPDATE: Samsung Electronics is on track to see its operating profit soar to an astonishing $66 billion by 2026, according to a newly released report from South Korean brokerage house, KB Investment & Securities. This dramatic increase is driven by a surge in global demand for memory chips, positioning Samsung as a leader in the semiconductor sector.

In the first nine months of 2023, Samsung reported an operating income of $16 billion. Analysts from KB Investment predict that this figure will rise to over $13 billion in the fourth quarter alone, underscoring the company’s robust profitability. Notably, it is estimated that Samsung’s semiconductor division will contribute nearly 80% of its total earnings during the October-December period.

The report highlights a significant rise in general-purpose memory prices, which have jumped more than 50% this month. In a statement, KB Investment’s research head, Kim Dong-won, indicated that Samsung is poised to achieve a record operating profit of nearly $14 billion in the upcoming fourth quarter.

Moreover, the anticipation surrounding Samsung’s high-bandwidth memory, HBM4, is palpable, with expectations that it will receive quality certification ahead of schedule by the end of this year. Historically, Samsung has lagged behind local competitor SK hynix in this lucrative segment, which is crucial for artificial intelligence and supercomputing applications. However, recent advancements, including the production of HBM3E, suggest a narrowing gap in the market.

During a recent conference call, Samsung confirmed ongoing tests of the next-generation HBM4 in partnership discussions with Nvidia, signaling a potential breakthrough in their collaboration.

In light of these impressive projections, analysts speculate that Samsung may utilize part of its increased operating profit for share buybacks, a strategic move aimed at boosting its stock price. Following the announcement, Samsung’s share price surged 3.52% on the Seoul stock exchange, reflecting investor optimism.

These developments highlight Samsung’s pivotal role in the semiconductor industry and its potential for unprecedented growth in the coming years. As the global demand for advanced technology continues to rise, the company’s innovations in memory chip production will be critical for maintaining its competitive edge.

Stay tuned for further updates as Samsung’s trajectory unfolds, and watch for how these developments will impact the technology landscape.