Samsung Electronics has projected a third-quarter operating profit of 107.4 trillion won (approximately $80 billion), marking the first time a technology company has surpassed 100 trillion won in a single quarter. The figure represents a 782.5% increase from the same period last year, fueled primarily by intense demand for artificial intelligence hardware.
Memory Chip Sales Offset Mobile Loss
High-bandwidth memory (HBM) shipments—stacked chips that power AI processors—grew by nearly 50% from the second quarter. Analysts estimated that Samsung's memory division earned around 110 trillion won, according to The Korea Times. Macro strategist Jerry Robinson noted that soaring demand for memory chips in AI infrastructure is yielding massive earnings for suppliers while inflating expenses across other sectors.
That cost squeeze affected consumer hardware. Analysts told Reuters that Samsung's mobile division sustained a loss exceeding $1 billion due to rising component prices. Samsung is scheduled to provide a detailed breakdown of its business segment results on October 29. The rapid surge in hardware spending mirrors wider market commentary surrounding tech sector growth, such as Dan Ives' predictions for tech stocks amid a $4 trillion AI wave.
ETF Rebalancing and Analyst Price Targets
Market volatility coincided with the preliminary report. Goldman Sachs analyst Heather Oh previously alerted clients that October 8 brought a cluster of market events, including preliminary Q3 figures, rebalancing across seven semiconductor ETFs, options expiration, and the conclusion of Samsung's 15 trillion won share buyback program.
During recent trading, foreign investors recorded net sales of 348.5 billion won, while institutional investors net sold 647.7 billion won, according to The Korea Times. Despite recent selling, analyst price targets remain elevated:
- Goldman Sachs: Reiterated a Buy rating on September 18 with a 490,000 won price target, representing an 87% upside over Thursday's closing price.
- Korea Investment & Securities: Set the highest target on the street at 650,000 won.
- BNK Investment & Securities: Issued a Hold rating with a target of 270,000 won, citing widespread industry capacity additions.
Key Takeaways
- 107.4 trillion won ($80 billion) Q3 operating profit project, up 782.5% year-over-year.
- HBM memory shipments expanded by nearly 50% quarter-over-quarter.
- Mobile operations lost over $1 billion due to higher chip component expenses.
- Foreign and institutional investors net sold 348.5 billion won and 647.7 billion won of stock, respectively.
- Fourth-quarter profit growth is projected to slow to 8.2% from 20% this quarter, though Samsung and Micron project the chip supply shortage to extend into 2028.
Why It Matters
Samsung's record performance emphasizes the massive capital deployment supporting fundamental AI infrastructure layer investments. However, the contrast between record memory gains and a $1 billion loss in the mobile division demonstrates how elevated chip costs are actively pressuring profitability in consumer devices. Furthermore, with both Samsung and Micron expecting supply shortages to extend through 2028, semiconductor bottlenecks will likely remain a critical macro driver for global technology stocks. Concerns over valuation multiples and hardware expenditure are becoming broader talking points across financial markets, reminiscent of Michael Burry's warning on AI market bubble risks.
