Samsung forecasts record $80 billion profit as AI‑driven memory demand soars

What Happened

Samsung Electronics projected a third‑quarter operating profit of 107.4 trillion won (about $80.2 billion), the first time any technology firm has topped 100 trillion won. The figure is roughly nine times the profit a year earlier and slightly above the LSEG SmartEstimate of 106.1 trillion won. Revenue is expected to reach about 195 trillion won, a 127 % rise from the same period last year, driven mainly by booming demand for AI‑related memory chips. Tight supply of DRAM and NAND, plus soaring demand for high‑bandwidth memory, pushed memory prices sharply higher. Douglas Kim estimates Samsung’s HBM shipments grew close to 50 % quarter‑over‑quarter, narrowing the gap with rival SK Hynix.

Reaction

The profit surge marks Samsung’s fourth consecutive record quarter and reflects a deepening global memory shortage as AI infrastructure outpaces supply growth. Analysts note the imbalance could last to 2028, though Chinese rivals and a possible slowdown in AI spending pose risks. Samsung’s shares slipped 0.2 % in early trade, falling 0.7 % according to a CNBC report, after a more than 25 % drop since a June peak. Market analyst Kim Seok‑hwan said the market now questions whether this sharp earnings growth can be sustained.

Outlook

Analysts forecast fourth‑quarter profit to rise 8.2 % from Q3, while conventional DRAM prices are set to increase 10‑15 % in Q4, far slower than the 60 % surge seen in Q2. The mobile division posted a loss exceeding $1 billion, and the foundry unit remains loss‑making due to high fixed costs and low utilisation, though utilisation is expected to improve in coming quarters. Investors will watch Samsung’s upcoming earnings call for details on its shareholder‑return policy and how it plans to sustain growth amid tightening chip supplies.

Context

AI applications need large amounts of high‑speed memory, so tighter DRAM and NAND supplies lift prices and boost earnings for memory makers. Samsung’s record profit shows how closely the chip market now follows AI spending trends.