By Kwanwoo Jun

Samsung Electronics expects third-quarter earnings to have rebounded to a three-year high, buoyed by a recovery in its flagship semiconductor segment as the expanding artificial-intelligence industry continues to fuel chip demand.

The better-than-expected guidance comes as some analysts have said that a boom in the semiconductor industry is approaching. Counterpoint Research, a Hong Kong-based global research company, attributed Samsung's solid performance largely to stronger-than-expected prices and sales of DRAM and NAND products used in a wide range of electronics, driven by AI-related investments centered around data servers.

"This year, the DRAM market has experienced a series of supply shortages, starting with HBM and extending to both legacy and newer, general-purpose products," Counterpoint Research director M.S. Hwang said ahead of the preliminary results.

Samsung's recent foldable-smartphone launches also contributed to its solid performance, Counterpoint said.

The South Korean technology giant on Tuesday estimated an operating profit of 12.1 trillion won, equivalent to $8.48 billion, for the July-September period, the highest since the second quarter of 2022. That would be a 32% increase from a year earlier and more than double the previous quarter's figure.

Third-quarter revenue likely rose 8.7% to a record 86 trillion won, Samsung said.

Analysts had expected the company to guide for operating profit of 9.742 trillion won on revenue of 83.585 trillion won, according to a FactSet consensus.

Shares in Samsung rose as much as 2.9% to 96,000 won before paring gains, partly on profit-taking after a recent rally.

The stock remains about 75% higher this year, buoyed by expectations that the AI boom will drive chip demand for years to come.

Nomura analysts led by C.W. Chung said in a recent note that investments in AI and conventional servers by big U.S. tech companies are set to boost memory-chip demand and push profit margins for DRAM and NAND products to records in 2026. The analysts predict "an unprecedented supercycle" in the memory market, expecting substantial investments to continue into 2027 and 2028.

Samsung's recent business pacts, including its Stargate partnership with OpenAI to expand data centers globally as well as chip-supply agreements with Apple and Tesla, have also been fueling the upbeat outlook on the company. Such deals, if implemented, could reduce losses at Samsung's foundry business and eventually turn it around.

Samsung is scheduled to release full quarterly results, including a breakdown of earnings for each of its business segments, later this month.

Write to Kwanwoo Jun at kwanwoo.jun@wsj.com

(END) Dow Jones Newswires

October 13, 2025 22:29 ET (02:29 GMT)

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