Samsung Electronics released a preliminary estimate of third-quarter operating profit of 107.4 trillion won, approximately 80.2 billion dollars. For the first time in the company’s history, the result would therefore have exceeded the 100 trillion won mark, supported by strong demand for semiconductors linked to artificial intelligence.
Expected operating profit marks growth of 782% compared to the same period last year. Revenues are also estimated to rise sharply: Samsung expects around 195 trillion won in the third quarter, with a growth of almost 127% year-on-year. Despite the results, Samsung shares fell 0.7% in early trading on Thursday.
According to Josh Gilbert, analyst responsible for the Asia-Pacific area of the investment platform eToro, the record result would not have been sufficient to meet market expectations. The analyst pointed out how high the expectations are for memory manufacturersin a sector increasingly influenced by the growth of investments in artificial intelligence.
Samsung and the demand for memories
The demand for memoirs continues to exist supported by spending on AIwhile supply remains limited. Gilbert also highlighted the growth of AI agents, which can require much more memory than a chatbot trying to answer a single question. Memory buyers are also signing multi-year supply agreements.
In the second quarter, Samsung had already recorded record results, with revenues of 171.5 trillion won and an operating profit of 89.5 trillion. The memory business was once again driving the result. The company has also stepped up investments and partnerships in the artificial intelligence sector.
In September Samsung has announced a strategic partnership with French startup Mistral AIaiming to use its AI models in semiconductor-related businesses. Full third-quarter results, including a breakdown by business division, will be released later in the month.
