Samsung expects record quarterly profit driven by AI chip demand
Driven by the surge in demand for artificial intelligence-focused chips, Samsung Electronics announced a record preliminary profit exceeding $80 billion in the third quarter.
Samsung Electronics announced that it expects a record preliminary operating profit of 107.40 trillion won, or approximately $80.2 billion, in the third quarter, driven by massive chip demand for artificial intelligence technologies.
Record Preliminary Profit Driven by the AI Impact
In a statement released on Thursday, Samsung Electronics stated that it is projecting a third-quarter preliminary operating profit of 107.40 trillion won, crossing the 100 trillion won threshold for the first time in company history.
The announced projections reveal that the company's quarterly operating profit recorded a 782% increase compared to the same period of the previous year.
Revenue Growth and Market Expectations
The company's projected total revenue for this period reached approximately 195 trillion won, rising by 127% compared to the same period last year.
Despite the record-breaking profitability, Samsung shares experienced a 0.7% decline in Thursday morning trading.
Strategic Partnerships and Analyst Comments
Josh Gilbert, market analyst at eToro Asia-Pacific, pointed out that the record profitability achieved fell short of the market's extremely high expectations.
Last September, Samsung announced that it had formed a strategic partnership with French artificial intelligence startup Mistral AI to integrate artificial intelligence models into its semiconductor operations.