Samsung Elec predicts 208% jump in Q4 profits, surpassing forecasts

• The 20 trillion won operating profit represents Samsung's highest quarterly profit ever, surpassing its previous record of 17.6 trillion won set in Q3 2018
• Revenue is expected to rise 23% year-over-year to 93 trillion won for the October-December period
• Strong performance attributed to tight memory chip supply and surging AI-driven demand boosting prices for conventional memory chips

Summary: Samsung Electronics Q4 2024 Earnings Preview

Key Financial Results:

Samsung Electronics projected a remarkable 208% year-over-year increase in Q4 operating profit, reaching 20 trillion won ($13.82 billion). This figure exceeds analyst expectations of 18 trillion won (LSEG SmartEstimate) and establishes a new quarterly record for the company, surpassing its previous high of 17.6 trillion won set in Q3 2018. Revenue is expected to climb 23% to 93 trillion won.

Company & Sector:

Samsung Electronics, the world's largest memory chipmaker, announced these preliminary results on January 8. The memory chip sector is the primary focus of this report.

Market Drivers:

The exceptional performance is attributed to two key factors:

• Tight supply conditions in the memory chip market
• Surging demand driven by artificial intelligence applications, which pushed up prices for conventional memory chips

Timeline:

• Reporting period: October-December 2024
• Announcement date: January 8, 2025
• Detailed results with divisional breakdowns: Expected later in January

Market Implications:

The results signal continued strength in the semiconductor market, particularly in memory chips essential for AI infrastructure. The supply-demand dynamics favor chipmakers, with AI adoption driving robust pricing power. Samsung's record-breaking quarter underscores the semiconductor industry's critical role in the AI revolution and suggests sustained momentum in the sector. The better-than-expected performance may positively influence investor sentiment toward semiconductor stocks and technology sector valuations.