Samsung flags $80 billion profit on AI boom, highest quarterly for any tech company

Business Recorder reported that Samsung Electronics expects third-quarter operating profit to reach 107.4 trillion won, or $80.17 billion, covering July to September. That figure is slightly above an LSEG SmartEstimate of 106.1 trillion won and would be the fourth consecutive quarter of record earnings. Booming AI chip demand has pushed memory prices sharply higher, boosting sales for the world's largest memory maker.

Samsung shares slipped 0.2% in early trade while the KOSPI index declined 0.5%, and the stock remains more than 25% below its June record high. Analysts have recently cut forecasts as a stronger won reduces the value of overseas sales booked in dollars. Market researcher TrendForce forecasts a smaller 10% to 15% increase in conventional DRAM contract rates for the fourth quarter, after a roughly 60% surge in the second quarter.

Analysts said the mobile unit suffered a bigger than expected deficit above $1 billion, while the foundry business is set to remain unprofitable. Memory chips are seen driving most of the earnings gain, and investors will watch the detailed results due on October 29. Shareholder return policy details are also expected at the company's results call later this month.