Samsung Electronics expects third-quarter operating profit to reach 107.4 trillion won, or approximately $80.17 billion, according to preliminary figures released Thursday. The surge was supported by escalating demand for AI chips, propelling memory segment earnings even as broader technology sector dynamics remain in flux.
The forecasted operating profit is nearly nine times higher than last year’s, outpacing analyst estimates from LSEG of 106.1 trillion won, while revenue is also projected to grow 127% year-on-year to 195 trillion won.
Despite this record performance, Samsung shares edged down 0.7% during Thursday’s session, mirroring concerns about the sustainability of AI-driven growth and reflecting broader market volatility. The stock has exhibited a decline of around 25% from a June peak.
Market observers cited ongoing memory chip shortages, highlighting that investment in AI infrastructure continues to outpace additions to supply, resulting in elevated chip prices. Both Samsung and industry competitor Micron anticipate that the current supply-demand imbalance in memory chips could persist through 2028. However, potential threats to this outlook include rising competition from Chinese manufacturers as well as signs of moderation in AI spending.
Currency movements also weighed on near-term sentiment; recent strength in the Korean won has led some analysts to adjust profit forecasts downward, citing reduced value of overseas sales when translated back to local currency.
While Samsung’s memory business accounts for the majority of recent gains, the company’s other divisions faced greater challenges. Analysts report that the mobile division recorded a loss of over $1 billion in the third quarter, impacted by rising component prices.
Samsung’s semiconductor foundry operations also continued to post losses, though industry experts expect utilization rates to improve in coming quarters amid recovery in advanced process orders.
As investors await Samsung’s full third-quarter earnings and business segment breakdown due October 29, focus remains on the long-term demand outlook for AI memory chips and any forthcoming updates on shareholder return strategies.
