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

URGENT UPDATE: Samsung Electronics is on track to achieve a staggering $66 billion in operating profit by 2026, according to a new report from KB Investment & Securities. This forecast comes as global demand for memory chips continues to soar, marking a significant turnaround for the South Korean tech giant.

Just announced on November 26, 2023, the brokerage’s analysis reveals that Samsung’s operating income has already reached $16 billion for the first nine months of this year. KB Investment anticipates that this figure will surpass $13 billion in the fourth quarter alone, underscoring the rapid growth in Samsung’s semiconductor sector, which is projected to contribute nearly 80% of overall earnings during this period.

This surge in profits is largely driven by a remarkable rise in general-purpose memory prices, which have increased by more than 50% this month. “Samsung Electronics is predicted to log a record operating profit approaching $14 billion in the fourth quarter,” stated Kim Dong-won, the head of research at KB Investment. Such impressive growth highlights the company’s resilience and capacity to capitalize on market demands.

In addition, Samsung is making strides in the high-bandwidth memory (HBM) segment, a critical component for artificial intelligence applications and supercomputers. The company has been working to close the gap with local rival SK Hynix and is now producing HBM3E. Notably, the likelihood of Samsung’s next-generation HBM4 passing quality certification ahead of schedule has increased significantly, with expectations set for this year.

During a recent conference call, Samsung confirmed that Nvidia is actively testing the new HBM4 for potential collaboration, which could further enhance its market position. This partnership would mark a pivotal moment in Samsung’s semiconductor strategy and its efforts to lead in AI technologies.

Analysts expect that a portion of Samsung’s projected operating profit may be allocated for share buybacks, aimed at boosting stock prices. On the Seoul stock exchange, Samsung’s share price climbed by 3.52% on the same day the report was released, reflecting investor confidence in the company’s promising future.

This news is not just a corporate milestone; it signifies Samsung’s critical role in the global technology landscape, impacting jobs, investments, and innovation. As demand for advanced memory solutions escalates, Samsung’s potential record profits could lead to significant reinvestments into its workforce and technology, benefiting the broader economy.

As the situation develops, investors and tech enthusiasts alike will be closely monitoring Samsung’s moves in the semiconductor market. The company’s upcoming announcements and strategic decisions will be crucial in determining its competitive edge in the fast-evolving tech industry.