Samsung Electronics forecast a record quarterly profit on the back of surging memory-chip prices. The figures bode well for U.S. rival Micron Technology.

Samsung said its operating profit for the final quarter of last year likely reached 20 trillion won ($13.81 billion), in preliminary results Thursday -- more than triple the year earlier figure. Quarterly revenue is forecast to have risen 23% to 93 trillion won.

Samsung will release full quarterly results, including an earnings breakdown for each of its business segments, later this month. But the profit surge was almost certainly fueled by its flagship memory-chip segment. Memory prices surged between 40% and 50% in the final quarter of 2025 and are expected to increase at a similar rate in the current quarter, according to Counterpoint Research.

Memory chips have become an increasingly important component of AI accelerators. In particular, a form of chip called high-bandwidth memory (HBM) is necessary for processors from the likes of Nvidia.

U.S. company Micron is the chief rival of South Korea's Samsung and SK Hynix in making memory chips. Micron shares have more than tripled in value over the past 12 months and analysts are raising their price target on the stock. Micron shares were up 0.5% in after-hours trading.

Shares of other companies in the memory-and-storage sector have also surged. Sandisk, a maker of NAND flash memory has spiked in recent months, while hard-drive makers Seagate and Western Digital were among the top performers in the S&P 500 for 2025.

However, as Barron's has written, the memory market is prone to cycles of boom and bust, meaning it could be perilous for investors to chase the rally higher.