Samsung Q3 Profit Hits Record High on AI Memory Demand

Samsung Electronics forecast its strongest-ever third-quarter operating profit as booming artificial intelligence demand continued to fuel sales of advanced memory chips, although earnings landed slightly below the higher end of market expectations.

The South Korean technology giant said preliminary operating profit reached about 107.40 trillion won ($80.1 billion) for the three months ended September 30. That represents a nearly tenfold increase from 12.2 trillion won in the same period a year earlier.

Samsung’s operating profit came slightly below Bloomberg’s estimate of 108.67 trillion won but exceeded the 106.1 trillion won forecast compiled by LSEG.

Third-quarter revenue surged to 195 trillion won, more than doubling from 86.06 trillion won a year earlier. The performance marked Samsung’s fourth consecutive quarter of record profits, highlighting the impact of strong AI-related semiconductor demand.

Samsung shares traded roughly flat to slightly lower following the preliminary earnings announcement. Rival memory chipmaker SK Hynix gained about 0.8%, while South Korea’s benchmark KOSPI index declined 0.7%.

The earnings surge was largely driven by growing demand for high-bandwidth memory and other advanced chips used in artificial intelligence infrastructure. Samsung, SK Hynix and Micron Technology are major suppliers of memory products used alongside Nvidia’s AI processors.

Rapid expansion in AI computing has increased demand for high-performance memory while tightening global chip supplies. The imbalance has pushed memory prices higher, providing a significant earnings boost for Samsung and other semiconductor manufacturers.

Samsung is scheduled to publish its detailed third-quarter financial results on October 29. Its semiconductor business is expected to remain the biggest contributor to earnings.

However, the company’s smartphone and consumer electronics operations may have faced pressure from rising component expenses. A stronger South Korean won could also have limited earnings growth by reducing the value of revenue generated overseas when converted back into the local currency.

Investors will closely watch Samsung’s upcoming results for further details on its AI memory business, pricing trends and expectations for semiconductor demand.