---
title: "Samsung beats expectations in operating profit and foresees memory chip demand improvement."  
description: "Samsung beats expectations in operating profit and foresees memory chip demand improvement."  
author: "Saumya Mishra"  
published: 2023-10-31  
updated: 2023-10-31  
canonical: https://www.mindstick.com/news/3474/samsung-beats-expectations-in-operating-profit-and-foresees-memory-chip-demand-improvement  
category: "technology"  
tags: ["samsung"]  
reading_time: 2 minutes  

---

# Samsung beats expectations in operating profit and foresees memory chip demand improvement.

[Samsung Electronics](https://www.mindstick.com/news/2707/india-disagreement-between-samsung-and-india-over-the-110-million-in-industrial-incentives) reported third-quarter [operating profit](https://answers.mindstick.com/qa/35518/what-is-nopat-net-operating-profit-after-tax) that was better than expected despite dropping **77.6% from a year ago**. The company expects fourth quarter demand for memory chips to pick up, driven by year-end promotions, new product launches by its major [customers](https://www.mindstick.com/articles/13008/how-does-a-customer-portal-enhance-the-experience-of-customers), and strong demand for [generative AI](https://www.mindstick.com/articles/333794/how-generative-ai-is-helping-in-enhancing-your-brand-s-presence-online).

- **Samsung's third-quarter operating profit was better than expected, despite declining 77.6% from a year ago.**
- **The company expects fourth quarter demand for memory chips to pick up, driven by year-end promotions, new product launches by its major customers, and strong demand for generative AI.**
- **Samsung will be expanding its sales of [advanced](https://www.mindstick.com/articles/12993/5-advanced-features-for-your-odoo-ecommerce-theme)-node products to meet demand for high performance** [**chips**](https://www.mindstick.com/articles/333879/manufacturing-of-chips-in-the-semiconductor-market) **in generative AI.**

Samsung's third-quarter operating profit of **2.43 trillion** Korean won beat analysts' expectations of 2.3 trillion Korean won. Revenue for the quarter was **67.4 trillion** Korean won, versus estimates of **67.8 trillion** Korean won.

Samsung's memory chip [business](https://www.mindstick.com/articles/12213/how-to-start-a-jewellery-making-business-online-business-ideas), which accounts for the majority of its profits, has been hit hard by a **global glut**. However, the company is seeing some signs of recovery, with demand for high-performance chips in **generative AI** picking up.

Samsung said it expects fourth quarter demand for memory chips to improve, driven by year-end promotions, new product launches by its major customers, and strong demand for generative AI. The company is also expanding its sales of **advanced-node products** to meet demand for **high performance chips.**

![Samsung beats expectations in operating profit and foresees memory chip demand improvement.](https://www.mindstick.com/usernews/655071/77432b09-a67e-4e15-b1e9-18d4b31f4190/images/4635b39c-a752-4c23-8978-76b957446445.jpg)

Samsung's [earnings](https://www.mindstick.com/articles/43853/making-the-most-of-the-upcoming-earnings) report is a positive sign for the memory chip industry, which has been struggling with a glut for the past year. The company's expectations for fourth quarter demand are also a good sign for the overall [semiconductor](https://www.mindstick.com/news/3924/malaysia-targets-over-100-billion-in-semiconductor-industry-investment) industry.

## Additional details:

- **Samsung is expected to supply high-performance DRAM chips and HBM3 to U.S.-based chip designer Nvidia.**
- **Samsung is also expanding its sales of advanced-node products, such as DDR5 and UFS4.0.**
- **Analysts expect Samsung's earnings to rebound in 2024, driven by strong demand for [AI chips](https://www.mindstick.com/articles/336617/what-are-ai-chips-and-components-used-for-manufacturing) and advanced-node products.**

---

Original Source: https://www.mindstick.com/news/3474/samsung-beats-expectations-in-operating-profit-and-foresees-memory-chip-demand-improvement

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