The South Korean tech giant Samsung is expected to announce its highest Q3 operating profit this year since 2022, which is an increase of 10% compared to the same period last year. The reason behind this profit is said to be higher memory chip prices supported by AI demand.
Reportedly, a survey of 31 analysts mentioned that Samsung will report an operating profit of 10.1 trillion won for the July-September period. As per the analysts, the reason attributed to this profit is conventional memory chip pricing, which would offset weaker sales volumes of high-bandwidth chips, as Samsung has yet to supply its latest HBM products to Nvidia.
It is said that the demand for memory chips, particularly from hyperscalers and AI-related investments for services such as ChatGPT, has put more workload on general servers, boosting conventional memory chip prices. The prices of some DRAM chips (used in servers, smartphones, and PCs) are also said to have jumped 171.8% in Q3 from a year earlier.
Samsung’s deals with customers like OpenAI and Tesla are expected to improve market sentiment towards its shares and chip business, including both memory and contract chip manufacturing.
Though the recent AI-driven supply deals point towards a positive response for Samsung, there are certain uncertainties as well, like potential US tariffs on chips and China’s tightened export controls on rare earth materials used in advanced chips and manufacturing equipment.
It is revealed that Samsung will be announcing its estimates on revenue and operating profit tomorrow, while full results will be announced later this month.
