Samsung Forecasts Record $80 Billion Profit on AI Chip Boom
Samsung Electronics forecast a historic operating profit of 107.40 trillion won ($80.2 billion) for the third quarter, exceeding the 100 trillion won milestone for the first time as surging demand for artificial intelligence (AI) continued to strengthen its semiconductor business. The preliminary figure represents an increase of 782% compared with the same period a year earlier, while projected revenue of approximately 195 trillion won marks a rise of nearly 127%. Despite these exceptional results, Samsung’s shares fell 0.7% on Thursday morning, suggesting that investor expectations had risen considerably alongside the rapid expansion of the AI industry.
Josh Gilbert, lead analyst for the Asia-Pacific region at investment platform eToro, observed that the company’s record-breaking performance had nevertheless fallen short of market expectations. He explained that semiconductor manufacturers are operating in an environment where investors demand increasingly strong results, leaving limited room for even substantial earnings growth to exceed expectations. The market reaction highlights the pressure on major technology companies to demonstrate that their investments in AI-related infrastructure can generate returns beyond what investors have already anticipated.
The broader outlook for the semiconductor industry remains positive, supported by increasing expenditure on AI systems and persistent constraints in memory-chip supply. As companies develop increasingly sophisticated AI applications, demand for advanced memory products continues to grow. Gilbert emphasized that AI agents could create additional demand because they perform more complex tasks and require substantially more memory than conventional chatbots designed to answer individual questions. This development could provide memory manufacturers with further opportunities to expand their businesses as AI adoption spreads across industries.
Another factor supporting Samsung’s outlook is the growing use of multiyear supply agreements between memory manufacturers and their customers. According to Gilbert, these arrangements offer Samsung greater visibility into future demand and help reduce uncertainty in a market historically vulnerable to cyclical downturns. Although semiconductor demand can fluctuate significantly, longer-term purchasing commitments may provide manufacturers with a more predictable foundation for production planning, investment decisions, and capacity expansion.
Samsung’s latest forecast follows a strong second quarter, when the company recorded revenue of 171.5 trillion won and operating profit of 89.5 trillion won, both representing records at that time. Its memory-chip operations were the principal driver of this performance, benefiting from demand associated with AI infrastructure. The latest projections indicate that this momentum has continued, with both revenue and operating profit expected to increase substantially from the previous quarter.
Beyond its semiconductor business, Samsung has also strengthened its strategic commitment to artificial intelligence through investments and partnerships. In September, the company announced a strategic partnership with French AI startup Mistral AI, under which Samsung plans to deploy Mistral’s AI models across its semiconductor operations. The initiative reflects the company’s efforts to integrate AI technologies into its production processes and strengthen its position in an increasingly competitive technology market.
Samsung is expected to publish its complete third-quarter earnings report later this month, providing a more detailed breakdown of performance across its business divisions. The results will offer investors a clearer assessment of the contribution from semiconductors and other operations, while helping determine whether the company’s exceptional growth can be sustained amid elevated expectations, continued AI investment, and changing conditions in the global chip market.
