Samsung Electronics is expected to report a nearly 9x rise in third-quarter operating profit in preliminary results on October 8, as AI demand lifts memory chip sales, though analysts have cut forecasts since late August.

London Stock Exchange Group’s SmartEstimate, which gives more weight to analysts with stronger track records, was lowered by 7.7%.

Slower gains in memory chip prices and a stronger South Korean won could also limit chip margins.

TrendForce expects conventional dynamic random-access memory contract prices to rise 10% to 15% quarter on quarter in the fourth quarter, down from roughly 60% in the second quarter.

Long-term supply deals are also capping further price increases.

Samsung is expanding shipments of HBM4 chips, narrowing the gap with SK hynix.

Samsung’s 8-layer HBM3E chips cleared tests for Nvidia in August 2024, after earlier reports that Samsung’s HBM chips were failing tests because of heat and power issues.

🔗 Source: Reuters

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