Samsung Electronics expects record third-quarter operating profit as surging demand for memory chips used in artificial-intelligence infrastructure transforms the earnings outlook for the world’s largest memory-chip manufacturer.
Samsung guided to operating profit of approximately 107 trillion won, equivalent to roughly $80 billion, for the quarter ended in September.
That represents an increase of roughly 782% from the same period last year.
The company expects quarterly revenue of approximately 195 trillion won, an increase of about 127% from a year earlier.
The extraordinary profit expansion reflects one of the strongest memory-market environments in the industry’s history.
Demand for DRAM and high-bandwidth memory has accelerated as technology companies build increasingly powerful AI computing systems.
Analysts estimate average DRAM prices increased about 20% from the previous quarter.
Samsung’s preliminary results arrive alongside record quarterly revenue from TSMC, providing another powerful indication that the physical semiconductor economy behind the AI boom remains exceptionally strong.
But investors again reacted cautiously.
Samsung shares declined despite the record profit guidance, while Nvidia, Broadcom and Micron also traded lower in U.S. premarket activity.
The reaction highlights an important change in market psychology.
Strong AI demand alone is no longer sufficient to guarantee higher technology valuations. Investors are increasingly examining the sustainability of margins, the amount of capital required to maintain production growth and whether the industry’s enormous infrastructure investments can generate adequate long-term returns.
Samsung also faces the cyclical nature of the memory business, where periods of shortages and high prices have historically been followed by increased production and eventual pricing pressure.
The company is expected to release its complete third-quarter financial results on October 29.
That report should provide greater detail on the contributions from memory, high-bandwidth memory, foundry operations, smartphones and displays.
The preliminary numbers nevertheless establish the scale of the current semiconductor cycle: Samsung is generating unprecedented profits as AI computing creates extraordinary demand for memory capacity.
