Samsung forecasts nearly nine-fold rise in third-quarter operating profit

Samsung Electronics forecast third-quarter operating profit of 107.4 trillion won ($80.17 billion) on October 8, nearly nine times its year-earlier result, as demand for artificial intelligence chips boosted memory earnings.

The estimate for July-September exceeded the LSEG SmartEstimate of 106.1 trillion won, according to a regulatory filing. Operating profit stood at 12.17 trillion won a year earlier. The projected result would mark Samsung's fourth straight quarterly operating profit record.

Samsung said revenue would likely reach 195 trillion won, a 127% increase from a year earlier. The company plans to publish detailed results on October 29, including earnings for individual business divisions.

Memory chips are expected to contribute most of the earnings increase. Analysts expect demand to keep exceeding supply, with the gap potentially growing in 2027 as AI applications take up more global memory production capacity. Tight supplies of conventional DRAM and NAND chips, alongside rising demand for high-bandwidth memory, have pushed prices higher.

Douglas Kim of Douglas Research Advisory estimated that Samsung's high-bandwidth memory bit shipments grew close to 50% from the previous quarter. The higher memory prices also raise component expenses for Samsung's smartphone and consumer electronics operations, putting pressure on their margins.