Samsung Electronics is expecting a record third-quarter operating profit as the global artificial intelligence boom continues to drive strong demand for advanced memory chips.
The South Korean technology giant said Thursday that its preliminary operating profit is expected to reach 107.40 trillion won, or about $80.2 billion. The figure marks the first time Samsung’s quarterly operating profit has crossed the 100 trillion won threshold.
The projected profit represents a 782% increase from the same period a year earlier. Samsung also forecast quarterly revenue of approximately 195 trillion won, up nearly 127% year over year.
Despite the record outlook, Samsung shares fell 0.7% during Thursday morning trading, reflecting investor concerns that the company’s results may not have exceeded already-high market expectations.
AI Demand Drives Memory Business
Analysts said Samsung’s performance highlights just how strong expectations have become across the semiconductor industry as companies continue to invest heavily in artificial intelligence.
Josh Gilbert, lead analyst for the Asia-Pacific region at investment platform eToro, said Samsung’s record profit still appeared insufficient to satisfy investors given the extraordinary expectations surrounding AI-related chip demand.
Josh Gilbert, lead analyst for the Asia-Pacific region at investment platform eToro, said Samsung’s record profit still appeared insufficient to satisfy investors given the extraordinary expectations surrounding AI-related chip demand.
The broader outlook for the memory chip industry remains strong, however. AI systems require significant amounts of memory, and limited supply has helped support demand and pricing.
The growth of AI agents could further increase memory requirements because these systems can handle more complex tasks and consume substantially more memory than basic chatbot applications.
Long-Term Chip Demand Provides Visibility
Another positive factor for Samsung is that memory buyers are increasingly entering multiyear supply agreements. Such contracts can give the company greater visibility into future demand and reduce concerns about sudden downturns in the memory market.
Samsung had already reported a record second quarter, with revenue reaching 171.5 trillion won and operating profit totaling 89.5 trillion won. Its memory business was a major contributor to those results.
Samsung Expands AI Investments
Beyond its chip operations, Samsung is also increasing its investments and partnerships in artificial intelligence. In September, the company announced a strategic partnership with French AI startup Mistral AI, with plans to deploy Mistral’s AI models across Samsung’s semiconductor operations.
Samsung is expected to release its complete third-quarter earnings later this month, including detailed results from its individual business divisions. Those figures will offer a clearer picture of how strongly AI-driven demand is contributing to the company’s growth.
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