Samsung Electronics has forecast a 32% increase in its third-quarter operating profit, exceeding market expectations. The South Korean tech giant estimates an operating profit of around 12.1 trillion won (US$8.5 billion) for the July-September period, the largest quarterly earnings since the second quarter of 2022. This figure is 17.4% higher than the average estimate, according to South Korea’s Yonhap news agency.

The strong results can be attributed to firm demand for server and artificial intelligence chips, which drove higher prices and shipments of conventional NAND and DRAM memory. Samsung has reclaimed the top spot in memory market revenue in the third quarter, driven by stronger-than-expected prices and sales volumes of general-purpose DRAM and NAND. This growth is centered around servers and AI-related investments.

The company’s sales increased 8.7% to 86 trillion won, with the data for net income not available. Samsung is also expected to benefit from stronger mobile earnings, driven by improved product mix and solid demand for its latest foldables, including the new Galaxy Z Fold7.

Earlier this month, Samsung signed preliminary deals with OpenAI to provide chips and other equipment for its Stargate project. In July, the company signed a $16.5 billion deal with Tesla to produce Tesla’s next-generation AI6 chip at its new chip plant in Taylor, Texas. Samsung is expected to release its final earnings report at the end of this month, with its shares up 2.79% in early trading in Seoul.

The forecast increase in operating profit highlights Samsung’s strong position in the memory market and its growing presence in the AI and server chip sectors. With its strategic partnerships and investments in new technologies, the company is well-positioned for future growth. As the tech industry continues to evolve, Samsung’s performance will be closely watched by investors and industry analysts alike.