Samsung Electronics Projects Record 100 Trillion Won Quarterly Profit

Samsung Electronics is projected to achieve a record quarterly operating profit exceeding 100 trillion won for the July-September period. Brokerage estimates place the operating profit between 106.1 trillion won ($79.1 billion) and 108.1 trillion won ($80.2 billion) on revenue of 201.7 trillion won, representing a nearly nine-fold increase in profit and a 134.4 percent rise in revenue compared to the previous year.

This growth is driven by robust demand for AI infrastructure and memory semiconductors, specifically DDR5 DRAM, enterprise solid-state drives, and high-bandwidth memory (HBM). Samsung's HBM market share reached 33 percent in the second quarter, and the company is expanding shipments of HBM4 chips to narrow the gap with market leader SK Hynix. These HBM4 chips are expected to be integrated into the Vera Rubin AI accelerator from Nvidia Corporation.

Despite the semiconductor surge, the company faces headwinds including a strengthening South Korean won, rising competition from Chinese rivals in DRAM and NAND markets, and a deceleration in memory chip price increases. Additionally, Samsung's foundry, System LSI, and consumer electronics divisions continue to report losses due to stagnating demand and rising raw material costs. To mitigate industry volatility, Samsung aims to secure long-term contracts for approximately two-thirds of its memory output. The company will provide preliminary third-quarter results on Thursday.