Samsung Electronics forecasts that its quarterly profit will exceed 100 trillion won, setting a world record for the technology company. This forecast is based on a significant rise in memory sales driven by growing demand for chips designed for artificial intelligence (AI).
The global memory chip manufacturer estimated operating profit for the period from July to September at 107.4 trillion won ($80.17 billion), slightly exceeding LSEG SmartEstimate's projection of 106.1 trillion won. This forecast marks the fourth consecutive quarter of record operating profit for Samsung.
This record highlights the deepening global shortage of memory chips, as investments in AI infrastructure outpace supply growth, leading to sharp price increases for chips. Samsung and Micron expect this imbalance to persist until 2028, although risks remain related to Chinese competition and potential slowdowns in AI spending.
Despite achieving another record revenue, Samsung's shares traded sideways, declining by 0.2% in early trading compared to the KOSPI benchmark's 0.5% drop. The company's stock price has fallen more than 25% from its June peak due to concerns about the sustainability of the AI boom.
Analysts have also adjusted their forecasts due to the significant strengthening of the South Korean currency, which reduces the value of foreign sales denominated in dollars when converted to the local currency. Market analyst Kim Seok-hwan of Mirae Asset Securities noted that market attention has shifted to the question of whether the sharp profit growth seen a year ago can be sustained.
Fourth-quarter profit is expected to grow by 8.2% compared to the previous quarter, a deceleration from the 20% quarterly growth in the third quarter, and chip price increases are expected to slow down. Research firm TrendForce predicts that contract prices for standard DRAM will increase by 10%–15% in the fourth quarter compared to the previous one, significantly slower than the nearly 60% jump in the second quarter.
Investors are closely watching the moderation of memory prices after a rally that lasted over a year and led to record profit margins for major memory producers like Samsung, SK Hynix, and Micron. Samsung reported that third-quarter revenue is likely to increase by 127%, reaching 195 trillion won year-over-year. The company will present detailed results, including revenue breakdowns by business division, on October 29.