Samsung Electronics has projected a nearly nine-fold jump in third-quarter operating profit, forecasting 107.4 trillion won — about $80.17 billion — as surging demand for artificial intelligence chips continues to reshape the global semiconductor industry.
The guidance, released on Thursday, marks the first time any technology company in the world has crossed the 100 trillion won threshold in quarterly operating profit. It also represents Samsung's fourth consecutive quarter of record operating profit.
The figure compares with 12.17 trillion won a year earlier and came in slightly ahead of the LSEG SmartEstimate of 106.1 trillion won, according to a regulatory filing reported by Reuters. Samsung also expects third-quarter revenue to rise 127 per cent to 195 trillion won.
AI demand outstripping supply
The record run is being driven by the memory-chip market, where Samsung is the world's largest manufacturer. Soaring demand for AI infrastructure has outpaced supply growth, sending chip prices sharply higher. Tight supply of conventional DRAM and NAND chips, combined with surging demand for high-bandwidth memory — the specialised chips essential for processing the vast data workloads of AI systems — has created an imbalance that Samsung and Micron expect to persist into 2027, with some forecasts extending into 2028.
Analysts, however, are beginning to question how long the sharp earnings growth can continue. Samsung's shares slipped 0.2 per cent in early trading on Thursday, versus a 0.5 per cent fall in the benchmark KOSPI. The stock has already slumped more than 25 per cent from its record high in June amid concerns about the durability of the AI boom, and analysts have recently trimmed forecasts because of the sharp appreciation of the South Korean currency, which reduces the value of dollar-denominated overseas sales.
"The market's focus has shifted to whether the sharp earnings growth that started a year ago would be sustainable," market analyst Kim Seok-hwan at Mirae Asset Securities said, according to Reuters.
What comes next
Samsung is expected to release detailed results, including a breakdown of earnings by business division, later this month. Broader industry momentum remains strong: TSMC also reported robust third-quarter sales, underscoring continued strength in AI-related chip demand. But the sector faces longer-term risks, including growing Chinese competition and the possibility of a slowdown in AI spending.
For now, the forecast cements Samsung's position at the centre of the AI hardware boom — and sets a profit record no technology company has ever reached.
Sources: Reuters, Malay Mail
The guidance, released on Thursday, marks the first time any technology company in the world has crossed the 100 trillion won threshold in quarterly operating profit. It also represents Samsung's fourth consecutive quarter of record operating profit.
The figure compares with 12.17 trillion won a year earlier and came in slightly ahead of the LSEG SmartEstimate of 106.1 trillion won, according to a regulatory filing reported by Reuters. Samsung also expects third-quarter revenue to rise 127 per cent to 195 trillion won.
AI demand outstripping supply
The record run is being driven by the memory-chip market, where Samsung is the world's largest manufacturer. Soaring demand for AI infrastructure has outpaced supply growth, sending chip prices sharply higher. Tight supply of conventional DRAM and NAND chips, combined with surging demand for high-bandwidth memory — the specialised chips essential for processing the vast data workloads of AI systems — has created an imbalance that Samsung and Micron expect to persist into 2027, with some forecasts extending into 2028.
Analysts, however, are beginning to question how long the sharp earnings growth can continue. Samsung's shares slipped 0.2 per cent in early trading on Thursday, versus a 0.5 per cent fall in the benchmark KOSPI. The stock has already slumped more than 25 per cent from its record high in June amid concerns about the durability of the AI boom, and analysts have recently trimmed forecasts because of the sharp appreciation of the South Korean currency, which reduces the value of dollar-denominated overseas sales.
"The market's focus has shifted to whether the sharp earnings growth that started a year ago would be sustainable," market analyst Kim Seok-hwan at Mirae Asset Securities said, according to Reuters.
What comes next
Samsung is expected to release detailed results, including a breakdown of earnings by business division, later this month. Broader industry momentum remains strong: TSMC also reported robust third-quarter sales, underscoring continued strength in AI-related chip demand. But the sector faces longer-term risks, including growing Chinese competition and the possibility of a slowdown in AI spending.
For now, the forecast cements Samsung's position at the centre of the AI hardware boom — and sets a profit record no technology company has ever reached.
Sources: Reuters, Malay Mail
