Samsung forecasts €69.2bn quarterly operating profit as AI memory demand lifts earnings
Samsung Electronics forecast third-quarter operating profit of 107.4 trillion won (€69.2bn; $80.17bn), nearly nine times the year-earlier figure and its fourth consecutive quarterly record. The company attributed the rise to demand for memory chips used in AI infrastructure; its full results and business breakdown are due on 29 October.
Bottom line — Samsung’s 107.4 trillion won forecast is preliminary; the company’s 29 October report will show how much came from semiconductors.
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Samsung estimated revenue at 195 trillion won (€125.6bn; $145.6bn), up 126.6% year on year.
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The estimate slightly exceeded LSEG’s 106.1 trillion won operating-profit forecast, according to Reuters.
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TrendForce expects conventional DRAM contract prices to rise 10% to 15% in the fourth quarter, slower than the previous quarter’s roughly 60% surge, Reuters reported.
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Reuters reported that analysts expect Samsung’s mobile business to have lost more than $1bn (€0.86bn) as memory-chip costs rose.
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Samsung’s foundry business is expected to remain loss-making because of fixed costs and low utilisation, analysts told Reuters.
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Samsung shares fell 2.4% on the day of the forecast and remained more than a quarter below their June peak, according to the Financial Times.