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Samsung forecasts record third-quarter profit of $80 billion on the back of AI boom

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In short

Samsung Electronics reported a record third-quarter profit of $80.2 billion, surpassing 100 trillion won for the first time in the company's history, driven by the booming demand for artificial intelligence and the company's chips business. Revenue for the quarter came in at about 195 trillion won, up nearly 127% from the same period last year. Samsung, the world's largest memory chipmaker, has benefited from surging demand for memory used in AI infrastructure. The company has also stepped up investments and partnerships tied to AI, including a strategic partnership with Mistral AI. Samsung is expected to release its full third-quarter earnings, including a breakdown by business division, l…

Key points

  • Samsung's third-quarter profit of $80.2 billion surpasses 100 trillion won for the first…: Samsung's third-quarter profit of $80.2 billion surpasses 100 trillion won for the first time in the company's history.
  • The company's chips business has driven its record profit, fueled by the booming demand f…: The company's chips business has driven its record profit, fueled by the booming demand for artificial intelligence.
  • Revenue for the quarter came in at about 195 trillion won, up nearly 127% from the same p…: Revenue for the quarter came in at about 195 trillion won, up nearly 127% from the same period last year.

Samsung Electronics on Thursday reported third-quarter preliminary operating profit of 107.40 trillion won ($80.2 billion), surging past 100 trillion won for the first time in the company's history as booming demand for artificial intelligence continues to fuel its chips business.

Quarterly operating profit jumped 782% from a year earlier. Revenue came in at about 195 trillion won, up nearly 127% from the same period last year.

Samsung, the world's largest memory chipmaker, has benefited from surging demand for memory used in AI infrastructure. In the second quarter, the company posted record revenue of 171.5 trillion won and record operating profit of 89.5 trillion won, driven by its memory business.

The company has also stepped up investments and partnerships tied to AI. In September, Samsung announced a strategic partnership with French artificial intelligence startup Mistral AI, with plans to deploy the startup's AI models across its semiconductor operations.

Samsung is expected to release its full third-quarter earnings, including a breakdown by business division, later this month.

Original source: www.cnbc.com

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