Samsung Electronics is forecasting its strongest quarterly operating profit on record, with earnings expected to cross 100 trillion won for the first time as the global artificial intelligence boom fuels unprecedented demand for memory chips.
The South Korean technology giant estimates operating profit of 107.4 trillion won, or about $80.17 billion, for the July-September quarter. The figure is slightly above the 106.1 trillion won forecast from LSEG’s SmartEstimate and represents an almost nine-fold increase from the same period last year.
The projection marks Samsung’s fourth consecutive quarter of record operating profit. Strong investment in AI infrastructure has pushed demand for memory chips beyond available supply, driving prices higher and significantly improving margins for major producers.
Samsung and Micron expect the supply imbalance to continue through 2028, although growing competition from Chinese chipmakers and the possibility of slower AI investment could affect longer-term growth.
Despite the record forecast, Samsung shares were little changed in early trading, declining 0.2% compared with a 0.5% drop in South Korea’s benchmark KOSPI index. The company’s stock remains more than 25% below its June record high as investors question how long the AI-driven surge can continue.
A stronger South Korean won has also prompted analysts to lower some earnings forecasts because currency appreciation reduces the value of overseas revenue when converted into won.
Analysts expect Samsung’s fourth-quarter profit to increase by around 8.2% from the third quarter, a slower pace than the projected 20% sequential growth in the latest quarter. Memory price gains are also expected to moderate.
Research firm TrendForce forecasts conventional DRAM contract prices will rise 10% to 15% in the fourth quarter, compared with an increase of about 60% in the second quarter.
Samsung expects third-quarter revenue to reach 195 trillion won, up 127% year on year. The company will publish its detailed results on October 29.
