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

URGENT UPDATE: Samsung Electronics is projected to achieve a staggering $66 billion in operating profit by 2026, more than doubling its earnings from the previous year. This forecast, released by KB Investment & Securities on November 26, 2023, is fueled by soaring global demand for memory chips.

In the first nine months of 2023, Samsung reported an operating income of $16 billion. Analysts predict that the company will surpass $13 billion in operating profit in just the fourth quarter of this year, highlighting the explosive growth in its semiconductor sector, which could account for nearly 80% of its overall earnings during this period.

According to Kim Dong-won, head of research at KB Investment, “As general-purpose memory prices have risen more than 50% this month, Samsung is expected to log a record operating profit of around $14 billion in the fourth quarter.”

Additionally, Samsung’s advancements in high-bandwidth memory (HBM) technology are noteworthy. There is a significant chance that the upcoming HBM4 will pass quality certification ahead of schedule this year. This is crucial as HBM technology is widely used in artificial intelligence applications and supercomputers, where Samsung has previously lagged behind its local competitor, SK Hynix.

Samsung has made strides by producing HBM3E and has confirmed that tech giant Nvidia is currently testing its next-generation HBM4 for potential collaboration. This partnership could further enhance Samsung’s position in this lucrative market.

With the anticipated boost in profits, Kim also speculated that Samsung may engage in stock buybacks to enhance its share price. As a result of these positive forecasts, Samsung’s stock jumped by 3.52% on the Seoul Exchange on the same day.

This news is particularly significant for investors and stakeholders as Samsung continues to solidify its dominance in the semiconductor market, showcasing its resilience and adaptability in a competitive landscape.

As developments unfold, all eyes will be on Samsung’s performance in the upcoming quarters and its strategies to leverage this projected growth. Investors should stay tuned for further updates and insights into Samsung’s financial trajectory.