Samsung Electronics (OTC:SSNLF) is set to report its largest quarterly profit in more than three years, driven by the global surge in AI chip production. This heightened demand has constrained the supply and elevated prices of conventional memory chips, which remain central to the company’s business.

The South Korean tech giant, a key competitor to Taiwan Semiconductor Manufacturing Co. (NYSE:TSM), anticipates operating income of 12.1 trillion won ($8.5 billion) for the September quarter, marking a 31.8% increase from a year earlier. Revenue is expected to climb 8.7% to a record 86 trillion won.

Analysts point to high-bandwidth memory (HBM) as a key growth driver. Sanjeev Rana of CLSA Securities Korea told Bloomberg that Samsung’s HBM shipments jumped 70–80% from the previous quarter, and he added that writedowns in the company’s foundry business were likely smaller than initially ...