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

URGENT UPDATE: Samsung Electronics is projected to see its operating profit surge to an astounding $66 billion by 2026, more than doubling from the previous year, according to a report from South Korean brokerage firm KB Investment & Securities released on November 26, 2023. This remarkable growth is fueled by escalating global demand for memory chips, particularly in the artificial intelligence sector.

The tech giant reported an operating income of $16 billion during the first nine months of 2023, with estimates showing that it could exceed $13 billion in the fourth quarter alone. This surge is significant as Samsung’s semiconductor division is expected to contribute nearly 80% of the company’s total earnings for the October-December period.

Kim Dong-won, head of research at KB Investment, emphasized the impact of rising prices in his report, stating, “As general-purpose memory prices have risen more than 50% this month, Samsung Electronics is predicted to log a record operating profit approaching $14 billion in the fourth quarter.” The anticipated high-bandwidth memory, HBM4, is also on track to pass quality certification earlier than expected, which could further enhance Samsung’s competitive edge.

Historically, Samsung has lagged behind local rival SK hynix in the lucrative HBM market, essential for AI applications and supercomputers. However, the company is narrowing the gap by producing HBM3E and has confirmed that gaming giant Nvidia is currently testing the next-generation HBM4 for potential collaboration.

In response to this booming outlook, there are indications that Samsung may utilize a portion of its increased profits to buy back shares, boosting its stock price further. Following the announcement, Samsung’s stock climbed by 3.52% on the Seoul bourse, signaling strong investor confidence.

As the semiconductor market continues to evolve rapidly, all eyes will be on Samsung to see how it leverages its growing profits and technological advancements to secure a dominant position in the industry. Stay tuned for more updates as this story develops.