Samsung’s profit blueprint resets Micron stock bets

Investors successful Micron conscionable got a clear, high-signal "read-through" from the different broadside of the Pacific. It doesn't look similar a informing shot; it appears much similar a program for however the AI representation roar volition construe into important profits.

Samsung precocious released aboriginal guidance for the 4th fourth of 2025, implying a much than threefold summation successful nett vs. Q4 2024 and that the institution volition bash precise good compared to Q3 2025, acknowledgment to tighter representation markets and favorable pricing. That benignant of spike doesn't hap with mean request for user devices. It's the benignant you get erstwhile memory, which is an important portion of the modern AI stack, abruptly costs a batch of money.

Samsung hasn't fixed retired the conception information yet, but it's wide that erstwhile the world's biggest representation supplier posts statistic similar this, it usually indicates they person a batch of pricing power. And if that's true, Micron doesn't request Samsung to "name names" for the marketplace to link the dots to U.S. representation providers, particularly the ones that are astir affected by server DRAM and high-bandwidth representation request from AI infrastructure spending.

Samsung didn't interruption down the segments successful the guidance release, but the mathematics makes the constituent rather clear.

Samsung said that for the 4th fourth of 2025, it expects astir 93 trillion Korean won successful full gross and astir 20 trillion won successful operational profit. Because of Korean disclosure requirements, the numbers amusement the mediate of a gross scope of 92 trillion to 94 trillion won and an operating nett scope of 19.9 trillion to 20.1 trillion won.

Samsung reported generating 86.06 trillion won successful income and 12.17 trillion won successful operating nett during the 3rd 4th of 2025. It made 75.79 trillion won successful income and 6.49 trillion won successful operating nett successful the 4th fourth of 2024.

If those guidance numbers hold, it's a immense betterment implicit some past twelvemonth and the erstwhile quarter. Wall Street is already seeing it arsenic a motion that the representation upcycle is increasing hotter, not colder.

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Major quality sites person linked the emergence to stronger representation fundamentals and expanding request for AI, with restricted proviso supporting higher prices for DRAM, NAND, and HBM.