Samsung Expects Memory Chip Demand to Improve, Beats Profit Estimates
Samsung Electronics reported better-than-expected quarterly operating profit, signaling a potential bottoming out of the memory chip glut. While operating profit dropped 77.6% from a year ago, it jumped 262.6% from the previous quarter. Samsung expects memory chip demand to improve in the fourth quarter, driven by year-end promotions, new product launches, and strong demand for generative AI. The company plans to expand sales of advanced-node products, such as DDR5 and UFS4.0, to meet the growing demand for high-performance chips in generative AI. Despite uncertainties in the market, Samsung remains optimistic about a meaningful profit recovery in the coming quarters.