Samsung Electronics expects to deliver one of the strongest financial results in its history, with the artificial intelligence boom continuing to fuel demand for high-performance memory chips used in data centres and AI servers.

The South Korean technology giant has forecast operating profit of 89.4 trillion won for the April to June quarter, an almost 19-fold increase compared with the same period last year. Revenue is expected to reach approximately 171 trillion won, more than double last year’s figure.

The company released the preliminary figures ahead of its full earnings report later this month, providing investors with an early indication of how rapidly demand for AI hardware continues to reshape the semiconductor industry.

The latest forecast highlights the ongoing shortage of advanced memory chips as technology companies invest heavily in AI infrastructure. Memory products such as high-bandwidth memory are essential components in AI systems, and strong demand has enabled manufacturers including Samsung to increase prices while maintaining tight supply.

Samsung is one of the world’s largest semiconductor producers, supplying chips to major technology companies including Nvidia and Google, while also manufacturing smartphones, televisions, home appliances and other consumer electronics.

Analysts say AI remains the key driver behind the company’s performance. Counterpoint Research analyst Marc Einstein described the results as among Samsung’s best quarterly performances on record, pointing to sustained demand for AI hardware and limited global supply of advanced memory chips.

Research firm IDC also expects supply constraints to continue into next year as cloud providers and technology companies continue expanding AI data centres. The firm says the level of demand is unlike anything previously experienced by the memory industry, with manufacturers struggling to keep pace.

Despite the strong earnings guidance, Samsung’s shares fell by almost 7 per cent following the announcement, indicating some investors had been expecting even stronger results. Even so, the company’s market value has more than doubled since the beginning of the year.

Samsung’s domestic rival, SK Hynix, has also experienced exceptional growth as demand for AI memory accelerates, with its market value rising by more than 200 per cent this year. The performance of both companies has helped lift South Korea’s benchmark Kospi index by more than 80 per cent over the same period.

The wider semiconductor industry continues to benefit from record levels of AI investment. Earlier this year, Nvidia reported quarterly revenue exceeding A$122 billion, underscoring the enormous spending on AI infrastructure despite growing competition within the sector.

South Korea is also investing heavily in semiconductor manufacturing, announcing plans in June to support at least A$980 billion worth of chip production projects led by Samsung and SK Hynix. Similar investments are underway in Japan, China and Taiwan as countries race to expand production capacity and strengthen their position in the global semiconductor market.