Samsung's Q3 Profit Guidance Tops Analyst Estimates As AI Demand Outstrips Memory Supply

Samsung Electronics Co. Ltd. (OTC:SSNLF) on Wednesday guided for a rise in third-quarter profit and sales as artificial intelligence demand for memory chips tightens supply across the industry, though its shares in Seoul slipped less than 1%. Profit And Sales Jump Again The world’s largest memory chipmaker expects third-quarter sales to reach about KRW 195 trillion ($145.76 billion), up from KRW 171.5 trillion ($128.22 billion) in the second quarter and KRW 86.06 trillion ($64.35 billion) in the same period last year. It forecasts operating profit of about KRW 107.40 trillion ($80.30 billion) for the three months ending in September, up from KRW 89.49 trillion ($66.92 billion) in the second quarter and KRW 12.17 trillion ($9.10 billion) a year earlier. Analysts expect it to be KRW 106.1 trillion ($79.33 billion), Reuters reported, citing LSEG SmartEstimate. Read Also: Jeff Bezos Just Put Blue Origin's IPO on the Radar After $10 Billion Funding Round: 'It Probably Makes Sense' Memory Makers Say the Squeeze Will Last Samsung, SK Hynix Inc. (NASDAQ:SKHY), and Micron Technology Inc. (NASDAQ:MU) are the leaders in memory chips, and all three are benefiting from AI demand for high-bandwidth memory, which AI accelerators need to process complex workloads. Micron CEO Sanjay Mehrotra said last month that in 2027 and 2028, “we see demand exceeding supply.” Samsung Widens Its AI Chip Reach OpenAI is reportedly deepening its Samsung ties, with Harrison Kim of OpenAI Korea saying in September that the two are co-developing next-generation chips, according to a Reuters report. In August, Samsung raised prices for some advanced chipmaking services by up to 15% for new orders as AI demand filled its production lines. The latest announcement includes only topline figures. Samsung will release detailed third-quarter results, with division breakdowns, on Oct. 29. Price Action: Seoul-listed shares of Samsung were down 0.84% at the time of writing, to KRW 266,250 ($199.07). The benchmark index KOSPI was down 0.64%. According to Benzinga Edge rankings, Micron’s stock has a Momentum score in the 99th percentile and a Growth score in the 93rd percentile. See More: Top Growth Stocks Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Photo: Kittyfly / Shutterstock