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Investing.com-- Samsung Electronics Co Ltd (KS:005930) on Tuesday flagged a stronger than expected profit for the third quarter, as the world’s largest memory chip maker benefited from strong artificial intelligence-linked demand.
Samsung forecast third-quarter operating of around 12.1 trillion won ($8.4 billion), higher than Reuters expectations of 10.1 trillion won. The figure was higher than Q3 2024’s operating profit of 9.18 trillion won.
Consolidated sales are expected at 86 trillion won, Samsung said, higher than the prior year’s reading of 79.1 trillion won.
The stronger earnings were largely driven by a broad recovery in memory chip demand, especially amid increasing demand for AI-linked servers and chips. Demand for conventional memory, such as DRAM and NAND products, was also seen improving from a trough seen over the past two years.
Samsung is expected to begin supplying advanced high-bandwith memory chips to major AI chip manufacturers in the coming quarters, having recently cleared NVIDIA Corporation’s (NASDAQ:NVDA) requirements for HBM.
Samsung will release its full third-quarter results later in October.