Samsung Electronics Poised for Record Q3 Profit Fueled by Memory Chip Boom

Samsung Electronics is on track to report its strongest third-quarter profit since 2022, driven by surging memory chip prices and renewed server demand as global customers rebuild inventories. Analysts project an operating profit of 10.1 trillion won ($7.11 billion) for July–September, according to LSEG SmartEstimate data from 31 analysts—marking a 10% increase year-on-year.

Experts attribute the rebound primarily to the recovery in conventional memory chip prices, which has offset weaker sales of high-bandwidth memory (HBM) chips. Samsung, the world’s largest memory chipmaker, has yet to supply its latest HBM3E chips to Nvidia, delaying its participation in the high-end AI hardware segment. HBM chips are critical for artificial intelligence development, enabling faster data processing and improved energy efficiency through vertical stacking technology.

Rising demand from AI services like ChatGPT and hyperscalers has fueled broader server upgrades, pushing DRAM prices up by 171.8% year-on-year in Q3, according to TrendForce. While Samsung’s memory division has benefited from this surge, competitors SK Hynix and Micron have captured a greater share of AI-driven chip sales, partly due to Samsung’s exposure to restricted markets such as China.

Market sentiment toward Samsung is improving thanks to major supply deals with companies like OpenAI and Tesla. Shares have climbed over 43% since the company announced a $16.5 billion foundry deal with Tesla in July. Additionally, partnerships with OpenAI on the Stargate project are expected to further boost Samsung’s AI chip ambitions.

Despite strong momentum, analysts caution that U.S. tariffs and China’s export controls on rare earth materials could pose risks. Full financial results are expected later this month, following the company’s earnings guidance release on Tuesday.