Samsung’s AI chip boom drives record $80B third-quarter profit forecast

# Samsung Forecasts Record $80 Billion Quarterly Operating Profit as AI Chip Demand Surges

Samsung Electronics expects its third-quarter operating profit to reach 107.4 trillion Korean won, approximately $80.17 billion, as surging demand for artificial intelligence-related memory chips drives a sharp increase in earnings. The preliminary forecast points to another record quarter for the South Korean technology giant, highlighting the growing importance of semiconductor products in the global AI industry.

The projected operating profit would be nearly nine times the 12.17 trillion won reported during the third quarter of 2025. If confirmed in the company's final results, it would mark Samsung's fourth consecutive quarter of record operating profit.

Samsung also estimated third-quarter revenue at approximately 195 trillion won, representing a 126.6% increase from 86.06 trillion won a year earlier. Its preliminary guidance places sales between 194 trillion and 196 trillion won, with operating profit expected to range from 107.3 trillion to 107.5 trillion won.

The operating profit forecast exceeds the 106.1 trillion won estimate cited by Reuters from LSEG SmartEstimate, suggesting that Samsung's earnings performance could surpass market expectations. The company emphasized that the figures are preliminary and subject to confirmation in its detailed financial results.

## AI Memory Demand Drives Semiconductor Growth

The expected earnings surge is largely linked to Samsung's semiconductor business, where demand for memory components used in AI infrastructure has strengthened significantly. Data centers running advanced AI models require substantial quantities of memory, including high-bandwidth memory (HBM), alongside conventional DRAM and NAND products.

Rising demand has tightened supplies of traditional memory chips while increasing competition among semiconductor manufacturers to supply advanced products for AI systems. Samsung is working to strengthen its position in the HBM market, where it competes with South Korean rival SK Hynix.

According to Reuters, Douglas Kim of Douglas Research Advisory estimated that Samsung's HBM bit shipments increased by nearly 50% quarter over quarter during the third quarter. The growth highlights the company's efforts to expand its participation in a market increasingly shaped by AI computing requirements.

The latest forecast builds on Samsung's strong second-quarter performance. The company reported revenue of 171.5 trillion won and operating profit of 89.49 trillion won for the April-June period. The preliminary third-quarter estimates suggest further increases in both revenue and profitability as semiconductor demand continues to support its financial performance.

## Mobile and Foundry Businesses Face Challenges

Despite the strength of its memory operations, Samsung's results remain uneven across its business divisions. Analysts cited by Reuters estimated that the company's mobile business recorded a larger-than-expected loss of more than $1 billion during the third quarter.

Samsung's foundry business, which manufactures chips for customers, was also expected to remain loss-making. Relatively low factory utilization and fixed operating costs continue to weigh on profitability, although analysts anticipate that utilization could improve in coming quarters.

These challenges illustrate how the semiconductor boom has benefited some parts of Samsung's business more than others. While demand for AI memory has strengthened earnings, mobile operations and contract chip manufacturing continue to face separate market and operational pressures.

## Samsung Expands Its AI Infrastructure Investments

Beyond semiconductor production, Samsung is increasing its involvement in the wider AI infrastructure market. On September 29, the company and five Samsung affiliates announced a combined $1 billion investment in Helix Digital Infrastructure, an AI infrastructure company established by investment firm KKR.

Samsung Electronics is contributing $500 million, with the remaining investment coming from other Samsung affiliates. KKR, the Kuwait Investment Authority, Nvidia and Vistra are among Helix's founding investors.

Samsung has also established a strategic partnership with French AI company Mistral AI and announced a lead investment in the company's funding round. The collaboration is intended to explore applications of AI in Samsung's semiconductor design and manufacturing operations.

These initiatives reflect Samsung's broader strategy of participating in the expanding AI ecosystem, from supplying memory chips to investing in infrastructure and incorporating AI technologies into its own industrial processes.

## Detailed Results Expected October 29

Samsung is scheduled to release its full third-quarter financial results on October 29, including a breakdown of performance across its business divisions. Investors will be watching for confirmation of the preliminary figures and further details on memory chip demand, HBM shipments and the outlook for its mobile and foundry operations.

For now, the projected 107.4 trillion won operating profit and 195 trillion won revenue remain preliminary estimates. If confirmed, the results would underscore the scale of the AI-driven semiconductor boom and its contribution to Samsung's earnings recovery.