Samsung could achieve record revenue

Samsung Electronics announced that it expects to achieve its highest operating profit in three years in the third quarter. The ongoing global AI chip production race has created a supply squeeze for traditional memory chips, pushing up prices. This has supported strong demand for DRAM and NAND chips, Samsung’s main source of revenue.

Samsung Rebounds

The company announced that it is forecasting an operating profit of $8.5 billion for the July-September period. This represents a 32 percent increase compared to the same period the previous year and significantly exceeds market estimates.

This strong performance represents Samsung’s highest quarterly profit in 13 quarters. Analysts note that strong demand for traditional memory chips used in data center servers offsets weakness in sales of advanced AI chips, which Samsung has struggled with.

Samsung’s chip business is the primary driver of its revenue growth. In addition to traditional memory, the company is also experiencing a recovery in High-Bandwidth Memory (HBM) chips. The main revenue is being generated by the high demand for DRAM and NAND chips, fueled by the massive expansion of AI data centers.

Meanwhile, Samsung expects to increase its revenue by 8.7 percent year-over-year to a record $60.4 billion. The company will release detailed financial results and a breakdown of profits by business unit on October 30th.

Samsung has recently eased investor concerns by signing chip supply agreements with major tech companies such as Tesla and OpenAI. However, analysts warn that uncertainties such as the intensification of the US-China trade war, potential US tariffs, and Chinese export restrictions on rare earth elements and manufacturing equipment used in advanced chips could pose a negative impact.