Samsung forecasts world record-breaking $80B profit

Samsung Electronics Co. Ltd. has forecasted a world record-breaking quarterly profit of 107.4 trillion won, approximately $80.17 billion, in its preliminary third quarter earnings report. This profit is more than nine times higher than the same quarter last year and exceeds analysts' estimates of 106.1 trillion won. The company's anticipated profit represents its fourth consecutive quarter of record-breaking operating profit, driven by the ongoing global memory chip shortage caused by artificial intelligence demands.

Samsung predicts a 127% revenue growth from a year earlier to 195 trillion won, also a company record. Analysts believe that Samsung's semiconductor business will account for a significant portion of both profit and revenue. While Samsung's memory chip division is thriving under the current supply constraints and soaring prices, other business sectors, particularly its smartphone unit, are facing challenges due to higher component costs.

This has led to price increases for consumer electronics products. Despite potential risks like further U.S. tariffs on foreign semiconductor firms and increased competition in China, analysts expect the memory chip demand-supply imbalance to worsen before it improves, potentially causing further price increases.