Samsung Electronics recently forecast an operating profit of KRW107.4 trillion ($80.2 billion) in its preliminary Q3 figures. If attained this would be the first time the company would surpass the KRW100 trillion milestone.
With its chip business continuing to thrive, Samsung’s projected quarterly operating profit figure is a 782% increase year-on-year.
Revenue is expected to hit around KRW195 trillion, up almost 127%.
It would be the South Korean company’s fourth straight quarter of record operating profit, fuelled by an ongoing memory chip shortage driven by rising demand for AI services.
Josh Gilbert, lead analyst for APAC at investment platform eToro, told CNBC with “AI spending driving demand for memory and supply remaining tight, the larger story of the chip sector remains intact”, pointing to the fact emerging AI agents would require more memory than chatbots.
“Memory buyers are also committing to multi-year supply agreements, giving Samsung greater visibility over demand in a business where investors have always worried about the next downturn”, CNBC reported Gilbert as saying.
Samsung posted revenue of KRW171.5 trillion and operating profit of KRW89.5 trillion in Q2.
Source: Mobile World Live
Image Credit: Samsung Electronics
Source: Tahawul Tech