SEOUL, October 13 (AJP) - Samsung Electronics is expected to report third-quarter operating profit of 10.14 trillion won ($7.6 billion), more than doubling from the previous quarter and marking its strongest July–September performance, fueled by a sharp recovery in memory chip prices and progress in landing contracts for AI chips.
The South Korean tech giant, due to release preliminary earnings before market open Tuesday, is projected to have logged a 10.4 percent on-year gain in operating profit and more than doubled from 4.68 trillion won in the second quarter, according to market consensus compiled by FnGuide. The estimate has been revised upward by over 20 percent as DRAM prices recovered sharply.
The main driver of the turnaround is the Device Solutions division, which encompasses the memory and foundry businesses. Analysts attribute the rebound to a steep rise in DRAM contract prices, higher shipments of HBM chips for AI servers, and improved utilization at fabrication plants.
According to TrendForce, prices of mainstream DRAM chips used in servers, smartphones, and PCs surged 172 percent year-on-year in the third quarter.
Samsung has been working to narrow the high-bandwidth memory (HBM) gap with SK hynix, which dominates supply to AI chip leader Nvidia. While Samsung has yet to finalize a deal to provide HBM products to Nvidia, its broader memory and foundry momentum has underpinned the earnings recovery.
In the previous quarter, SK hynix surpassed its longtime rival with an operating profit of 9.2 trillion won on revenue of 22.2 trillion won, dethroning Samsung for the first time in memory profitability.
Despite lagging in HBM, analysts expect strong quarters ahead for Samsung and other chipmakers as global AI and data infrastructure demand remains robust. Morgan Stanley last week raised its price target for Samsung by 14 percent to 111,000 won, citing “improvement in memory prices and AI server demand” as well as Samsung’s “competitiveness in AI-related semiconductors.”
Still, some analysts warn that memory prices could face renewed pressure in the fourth quarter as supply expands. Samsung also faces external risks such as potential U.S. tariff hikes on semiconductors, which could push up device costs and dampen global demand.
Samsung shares closed at 93,300 won on Monday, nearing the psychologically significant 100,000-won mark for the first time in months ahead of its earnings release.
reporter
Candice Kim
candicekim1121@ajupress.com
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