(2nd LD) Samsung's Q3 operating profit reaches new high of 107.4 tln won

Samsung Electronics projected its third-quarter operating profit to reach over 107 trillion won (US$79.8 billion), setting a new quarterly record as demand for AI-related semiconductors surged. The South Korean tech giant's earnings guidance indicated a 782.5% increase in operating profit year-over-year, surpassing market forecasts by 1.6%.

Revenue for the period was expected to rise 126.6% to 195 trillion won. If confirmed, this would be the fourth consecutive quarter of record quarterly revenue and operating profit, and the first time a South Korean company has reported a quarterly operating profit exceeding 100 trillion won. The record-setting margin of 55.1% is the highest in Samsung's history.

Strong AI infrastructure investment growth and a semiconductor supply shortage are credited for the impressive performance, which is expected to persist through next year. Samsung's AI-focused HBM4 chips, set to contribute to earnings next year, could further drive profits. However, non-memory chip divisions within the chip division, such as system LSI and foundry businesses, are projected to remain in the red, with an estimated combined operating loss of around 1 trillion won.

The device experience division, encompassing Samsung's consumer electronics and mobile businesses, is also forecasted to record losses for a second consecutive quarter due to rising component prices. The company will release its final earnings report later this month.