Samsung rides the AI boom to post highest profit in three years

Samsung has revealed its earnings guidance for the third quarter (Q3) of this year. After missing out on the AI boom over the past two years, the company appears ready to capitalize on it. It expects to post its highest Q3 profit in the past three years, as it prepares to ship high-bandwidth memory (HBM) to Nvidia.

In its earnings guidance, Samsung Electronics revealed that it expects to post a revenue of KRW 86 trillion (~$60 billion) and an operating profit of KRW 12.1 trillion (~$8.46 billion) for Q3 2025. That is nearly a 32% improvement compared to the Q3 of 2024. Compared to the previous quarter (Q2 2025), the company's revenue increased by 15% and profit rose sharply by 158%.

This is the highest profit it has achieved over the past three years. Moreover, these figures are over 17% higher than even what analysts had predicted.

Due to a rise in prices of memory chips, increased sales of HBM chips, and improvement in its foundry business, the company's semiconductor division posted an operating profit of KRW 6 trillion (~$4.19 billion). It means nearly half of Samsung's profits came from its chip business.

Strong sales of its new foldable smartphones also helped the company in achieving a three-year-high profit. The Galaxy Z Flip 7 and the Galaxy Z Fold 7 received a positive feedback from consumers globally.

Samsung is expected to get Nvidia's approval in supplying fifth-generation HBM chips (HBM4) in the coming months. If it does, analysts expect the company to double its revenue in the next three years. The company has already partnered with Open AI to supply high-performance and power-efficient chips for AI servers.