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 released at the end of October.

Major South Korean companies tend to release previews of their earnings to advise investors ahead of more detailed reports.

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.

SK Hynix and Samsung’s stock market valuations crossed $1tn (£757bn) earlier this year, though their shares have since come down following concerns that tech stocks have been overvalued.