Samsung Electronics has reported a historic milestone for its third quarter, forecasting an operating profit of 107.4 trillion won, equivalent to approximately $80.2 billion. This marks the first time the South Korean technology giant has surpassed the 100 trillion won threshold in its history.
The financial surge is largely attributed to the escalating global demand for artificial intelligence chips. Preliminary revenue figures stand at roughly 195 trillion won, representing a year-over-year increase of nearly 127%. Operating profit is projected to be 782% higher than the same period last year, continuing a momentum established in the second quarter when the company posted record revenues and profits.
Despite the record-breaking figures, Samsung’s stock declined by 0.7% on Thursday morning. Market observers noted that the drop reflects the elevated expectations surrounding the AI trade. Josh Gilbert, lead analyst for APAC at eToro, remarked that while the profit is record-setting, the market did not reward the company for simply meeting high benchmarks.
Gilbert emphasized that the broader narrative for the semiconductor sector remains strong due to AI spending driving memory demand. He highlighted the shift toward AI agents, which require significantly more memory capacity than simple chatbots, and noted that buyers are securing multiyear supply agreements. These long-term contracts provide Samsung with greater demand visibility, addressing historical investor concerns regarding cyclical downturns in the memory business.
In addition to financial results, Samsung continues to expand its AI footprint through strategic partnerships. In September, the company announced a collaboration with French AI startup Mistral AI to deploy the startup’s models across its semiconductor operations. Samsung is scheduled to release its full, detailed third-quarter earnings breakdown by business division later this month.
Huge numbers, but does Samsung actually beat TSMC in foundry yet? The chip war isn’t just about memory sales.
The shift to AI agents needing massive memory is a key insight. Long-term contracts do make this less cyclical.
Stock dropped despite record profits? Investors are ruthless. Clearly, they expected even more from the AI boom.
Eighty billion is insane. I wonder if they can keep this up or if memory cycles will bite back soon.