Samsung Forecasts 782% Surge in Q3 Profit as AI Chip Demand Soars
Samsung Electronics expects third-quarter operating profit to jump 782.5% year-on-year to 107.4 trillion won ($80.1 billion), driven by soaring AI-related memory chip demand. Revenue is projected to rise 127% to 195 trillion won, marking a fourth straight record quarter.
Samsung Electronics on Thursday forecast a 782.5 percent year-on-year jump in third-quarter operating profit to 107.4 trillion won ($80.1 billion), driven by higher memory chip prices and strong demand from the artificial intelligence sector.
The South Korean technology giant, the world’s largest memory chipmaker, expects third-quarter revenue to rise 127 percent to 195 trillion won. Both figures would mark record highs and extend Samsung’s streak of setting new quarterly records for four consecutive quarters.
The global AI boom has sharply increased demand for advanced memory chips used in data centres. Samsung, along with SK hynix and Micron, dominates the high-bandwidth memory (HBM) market.
Analysts at Shinhan Securities expect Samsung’s earnings to strengthen further as the company expands production of next-generation HBM4 chips, which could also support higher margins.
However, rising DRAM and NAND memory prices are increasing costs for Samsung’s smartphone business, as the company seeks to control price increases and protect market share.
Samsung is expected to release its full third-quarter earnings report at the end of October. The company has also announced a plan to buy back up to $80 billion in shares to enhance shareholder returns.