Samsung Electronics is forecasting a record operating profit for the third quarter, with artificial intelligence demand powering its semiconductor business and lifting sales across its technology operations.
The company estimates operating profit at 107.4 trillion won, with a projected range of 107.3 trillion won to 107.5 trillion won under K-IFRS reporting rules.
Consolidated sales are estimated at about 195 trillion won.
This is the first time Samsung has exceeded 100 trillion won in quarterly operating profit, according to figures reported by CNBC.
The preliminary operating profit is 782% higher than a year earlier, while revenue is forecast to rise nearly 127% from the same period.
Samsung said detailed third-quarter earnings by business division will be released later in October.
Memory chip demand drives performance
The company's semiconductor operations benefited from strong demand for memory chips used in artificial intelligence data centers.
Samsung is one of the world's largest memory chip producers alongside SK Hynix and Micron, according to BBC.
In the second quarter, Samsung reported record revenue of 171.5 trillion won and operating profit of 89.5 trillion won, with the memory business driving the performance.
Analyst Josh Gilbert of investment platform eToro said the scale of expectations around AI-related chip companies has made strong results harder for investors to view as exceptional.
"Samsung has delivered a record profit and still fallen short of expectations, which tells you just how demanding the AI trade has become," said Gilbert, lead analyst for APAC at eToro.
Gilbert said demand for AI systems is increasing memory requirements, while buyers are also making longer-term supply commitments.
Samsung has gained more visibility into future demand in the memory market, according to his comments reported by CNBC.
"When expectations are so high for memory makers, the market doesn't hand out points for effort," Gilbert said.
Samsung has expanded its AI-related investments and partnerships, including a strategic partnership announced in September with French artificial intelligence startup Mistral AI to deploy AI models across its semiconductor operations.
The company is also expected to benefit from newer foldable smartphones launched in August, including its Galaxy Fold line and S26 smartphones, according to BBC.
Global AI investment has increased demand for chips and contributed to tighter semiconductor supplies.
Samsung shares fell 0.7% Thursday morning despite the profit forecast, CNBC reported.
The company is scheduled to provide its full third-quarter earnings report later this month.
