Samsung forecasts record third-quarter profit of $80 billion as AI boom fuels chip demand

Samsung Electronics on Thursday reported third-quarter preliminary operating profit of 107.40 trillion won ($80.2 billion), surging past 100 trillion won for the first time in the company's history as booming demand for artificial intelligence continues to fuel its chips business.

Projected quarterly operating profit is 782% higher from a year earlier. Revenue forecast of about 195 trillion won is up nearly 127% from the same period last year.

Samsung shares, however, dropped 0.7% Thursday morning.

"Samsung has delivered a record profit and still fallen short of expectations, which tells you just how demanding the AI trade has become," said Josh Gilbert, lead analyst for APAC at investment platform eToro. "When expectations are so high for memory makers, the market doesn't hand out points for effort."

With AI spending driving demand for memory and supply remaining tight, the larger story of the chip sector remains intact, Gilbert said, highlighting growth of AI agents that can consume far more memory than a chatbot answering a single question.

"Memory buyers are also committing to multiyear supply agreements, giving Samsung greater visibility over demand in a business where investors have always worried about the next downturn," he added.

In the second quarter, the company posted record revenue of 171.5 trillion won and record operating profit of 89.5 trillion won, driven by its memory business.

The company has also stepped up investments and partnerships tied to AI. In September, Samsung announced a strategic partnership with French artificial intelligence startup Mistral AI, with plans to deploy the startup's AI models across its semiconductor operations.

Samsung is expected to release its full third-quarter earnings, including a breakdown by business division, later this month.