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Samsung Forecasts Record $80 Billion Profit as AI Demand Surges

Oct 8, 6:21 AM2 min read

Drafted by AI from the sources below, fact-checked by the Ajako Taja Editorial Team · How we use AI

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Samsung expects a record $80 billion quarterly profit, a nine-fold increase fueled by the global surge in demand for AI memory chips.

Samsung Electronics expects a record operating profit of approximately $80 billion for the third quarter, a nine-fold increase driven by massive demand for artificial intelligence memory chips.

The South Korean tech giant released preliminary figures on Thursday projecting an operating profit of 107.4 trillion won ($80.2 billion) for the three months ending in September. This marks Samsung's fourth consecutive quarter of record earnings. According to International, the forecast represents a 782% jump from the previous year, while revenue is expected to rise nearly 127% to approximately 195 trillion won.

The surge is attributed to the global boom in AI data centers, which rely on semiconductors produced by Samsung and competitors like SK Hynix and Micron. BBC News reported that Samsung also expects a boost from its Galaxy Fold and S26 smartphones following the August launch of new folding devices. However, the high demand for chips has led to price increases for consumer products, including computers and smartphones.

Despite the record-breaking figures, some analysts noted the intense pressure on the sector. Josh Gilbert, lead analyst for APAC at eToro, told International that falling short of certain expectations shows "just how demanding the AI trade has become." He highlighted that AI agents consume significantly more memory than standard chatbots, which helps maintain tight supply and encourages buyers to sign multiyear agreements.

The firm has recently expanded its technological footprint through a partnership with Mistral AI to integrate artificial intelligence models into its semiconductor operations. While these preliminary forecasts are considered highly credible by investors, Samsung is scheduled to release its detailed third-quarter earnings report at the end of October.

Background

The forecast follows a second quarter where Samsung posted record revenue of 171.5 trillion won and an operating profit of 89.5 trillion won. In June, South Korea announced plans for at least $880 billion in manufacturing projects led by Samsung and SK Hynix to expand the nation's chip capabilities.