Samsung Electronics has said it expects an almost 19-fold jump in quarterly operating profits — a rise of roughly 1,800% — driven by soaring global demand for AI memory chips. The South Korean firm forecast operating profits of 89.4tn won (£43.6bn; $58.4bn) for the April-to-June period, its third record quarterly profit in a row, underscoring how the AI boom is reshaping the semiconductor industry as demand outstrips supply and pushes prices higher.

The forecast, released as earnings guidance ahead of full results due later in July, projected sales of around 171tn won, more than double the same period last year. Analysts said the performance was close to the sector record set by Nvidia and reflected tight chip supplies expected to persist into next year. Samsung, which makes chips for firms such as Nvidia and Google, saw its shares fall about 5.5% in Seoul on Tuesday, though its market value has more than doubled this year, helping lift South Korea's Kospi index by more than 80%. In June, the country unveiled at least $880bn of planned investment in chipmaking led by Samsung and rival SK Hynix.