Samsung Electronics says it expects a nine-fold surge in its quarterly profits compared with a year earlier, driven by surging demand for memory chips used in artificial intelligence (AI) data centres.

The tech giant estimates that its operating profit for the three months to the end of September will jump to 107.4tn won (£61bn; $80bn), its fourth quarter in a row of record earnings.

Samsung is one of the world’s largest memory chip makers alongside local rival SK Hynix and Micron in the US, which produce chips crucial for AI firms like Nvidia.

Samsung, which makes the Galaxy Fold and S26 smartphones, is also expected to get a boost from its latest folding devices that were launched in August.

The firm’s full third-quarter earnings will be published at the end of October.

Some of South Korea’s biggest companies release previews of their earnings to advise investors ahead of more detailed reports.

These forecasts are treated with much more credibility than estimates by external analysts as they are backed by internal company data.

There has been huge global demand for computer chips that power AI development, helping to lift the earnings and shares of manufacturers linked to the technology.

The surge in demand in recent years has resulted in a shortage of semiconductors globally, pushing up sales for firms like Samsung, with its stock market valuation crossing $1tn (£757bn) earlier this year.

Investment in the industry has surged, with US tech giants including Google, Amazon and Meta pledging to pour more than $650bn into AI projects this year.

In June, South Korea unveiled plans for at least $880bn in projects led by Samsung and SK Hynix to build out the country’s chip manufacturing capabilities in the coming years.

Rival Asian firms in Japan, China and Taiwan are also investing heavily in chip plants as demand for AI soars.

A chip shortage driven by surging demand has led firms including Samsung to raise prices, making products such as smartphones and computers more expensive.