Samsung Q3 profit jumps 783% as AI memory boom lifts chip earnings

Samsung Electronics (KS:005930) reported a record Q3 operating profit of 107.40 trillion won, up nearly tenfold YoY, but slightly below Bloomberg's 108.67 trillion won estimate. Sales more than doubled to 195 trillion won. The surge was driven by AI-fueled demand for memory chips, though smartphone and consumer electronics divisions faced pressure. A stronger South Korean won may have impacted earnings.

Samsung Electronics projected a nearly nine-fold increase in Q3 operating profit to 107.4 trillion won, exceeding estimates. The rise is attributed to strong demand for AI chips, driving memory earnings. Revenue is expected to increase 127% year-over-year to 195 trillion won. Detailed results will be released later this month.

AMD's Lisa Su met with Samsung Electronics' semiconductor head to discuss AI cooperation, including HBM4 supplies for AMD's Instinct MI455X chip. The long meeting suggests Samsung may gain an advantage over SK hynix in memory cooperation with AMD. Samsung was previously chosen as the first HBM4 supplier for AMD's next-gen chip.

Advanced Micro Devices (AMD) is securing HBM4 memory supply for AI accelerators. Micron Technology (MU) reports record revenue and expects supply tightness through 2028. Samsung's Q3 operating profit is projected to reach $79.1B, with memory price increases slowing. Both Samsung and SK Hynix have signed long-term supply agreements with major customers.

Samsung Electronics is set to release Q3 earnings guidance, with analysts projecting an operating profit of 106.1 trillion won ($79.1 billion), a record for the fourth consecutive quarter. However, memory price gains have slowed, raising questions about chip margins. The stronger Korean won and slower memory price increases have led to downward revisions in profit forecasts.

Goldman Sachs warns of potential volatility in Samsung Electronics (005930) on Oct. 8 due to overlapping events, including ETF rebalancing, options expiration, and the end of a share buyback. The bank expects mechanical selling pressure and reduced demand-supply support. Foreign investors have been net sellers of the stock. Goldman cut its Q3 operating profit forecast for Samsung by 5% to 106 trillion won, citing a stronger won.