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Samsung’s Q3 Profit Seen Jumping Nine-Fold, but Chip Margins May Be Flat - BusinessWorld Online
Analysts cut forecasts nearly 8% as moderating chip prices and a stronger won temper gains from AI-driven memory demand.
- On Thursday, Samsung Electronics is expected to report a nearly nine-fold jump in third-quarter operating profit to 106.1 trillion won , though analysts have cut forecasts by 7.7% since late August.
- Robust AI demand propelled the world's largest memory producers—Samsung, SK Hynix, and Micron—to record profits over a year-long rally, though chipmakers expect the shortage to persist into next year and possibly through 2028.
- Samsung's HBM market share is expected to rise to 34% this year from 20% last year, while competitors face pressure from Chinese DRAM and NAND adoption. Kinngai Chan of Summit Insights Group said, "An increasing number of OEMs and ODMs are adopting Chinese DRAM and NAND."
- The South Korean won strengthened 14.3% against the dollar in the third quarter, reducing overseas earnings value. Avril Wu, senior vice president for research at TrendForce, said price growth is expected to decelerate despite tight supply conditions.
- Chipmakers are relying on long-term supply deals to limit price gains and guarantee supply stability amid industry volatility. Samsung in July aimed to secure contracts covering about two-thirds of its memory output to reduce boom-and-bust cycle exposure.
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Samsung's Q3 profit seen jumping nine-fold, but chip margins may be flat
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Samsung posting nearly nine-fold jump in Q3 Profit on AI demand
Samsung Electronics is expected to report a nearly nine-fold jump in third-quarter operating profit, driven by robust AI demand, though analysts have cut forecasts by nearly 8% since the end of August. Despite moderating gains in the prices of memory chips and a strengthening South Korean won, the world’s largest memory-chip maker is expected to […]
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Total News Sources16
Leaning Left0Leaning Right2Center3Last UpdatedBias Distribution60% Center
Bias Distribution
- 60% of the sources are Center
60% Center
C 60%
R 40%
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