Samsung Projects $80 Billion Quarterly Profit: How Will Its Stock Price React?

Financials and Outlook

Samsung Electronics projects 107.4 trillion won ($80 billion) in third-quarter operating profit, marking the first time any technology company tops 100 trillion won in a quarter. This represents a 782.5% increase from the same period last year.

Key Drivers

Memory chips, which store data in phones and AI servers, did the heavy lifting. AI data centers are buying them faster than manufacturers can make them, pushing prices higher. Analysts estimate memory earned about 110 trillion won.

Business Performance

Samsung's high-bandwidth memory (HBM) shipments, stacked chips that feed AI processors, grew close to 50% from the second quarter. The mobile business, however, lost more than $1 billion as chip costs rose.

Market Expectations

Analysts expect the stock price to react to various factors, including chip fund rebalancing, options expiry, and a share buyback program. Goldman Sachs analyst Heather Oh warned clients that October 8 combines the company's preliminary third-quarter report, rebalancing across seven semiconductor ETFs, options expiry, and the end of a share buyback.

Growth Outlook

Analysts predict a slowdown in growth for the fourth quarter, with profit expected to rise 8.2% from the third quarter. Samsung and Micron expect the chip shortage to last into 2028.