Samsung Electronics has seen its stock price rise nearly 5% after the company announced record-breaking earnings forecasts, driven by unprecedented demand for artificial intelligence chips. The South Korean tech giant expects profits to jump eight-fold compared to the same period last year.

The surge in demand for high-performance memory chips, particularly High Bandwidth Memory (HBM), has positioned Samsung as a key beneficiary of the global AI boom. These specialized chips are essential components in AI data centers and advanced computing systems.

Analysts say the company’s strategic investments in advanced semiconductor manufacturing have paid off, allowing Samsung to capture significant market share in the rapidly expanding AI sector. The company has been competing fiercely with rivals SK Hynix and Micron Technology.

The AI chip market is expected to continue its explosive growth, with industry projections suggesting the sector could be worth over billion by 2027. Samsung’s leadership in memory technology gives it a competitive advantage as demand for AI infrastructure continues to accelerate.

Investors have responded positively to the company’s guidance, with shares trading at multi-month highs. The strong performance has also boosted the broader South Korean stock market, with the Kospi index showing gains.