Samsung Electronics just isn’t leaving any money on the desk, if its third-quarter forecast is any indication.
The tech big hopes to make $60.2 billion in gross sales and $8.5 billion in working revenue, nearly 3 times what it generated within the second quarter. This was Samsung’s most profitable quarter in three years because it aggressively returns to the core of the AI {hardware} market.
Samsung took benefit of the rising demand for high-bandwidth reminiscence processors used to run generative AI workloads. It elevated the price of NAND flash and DRAM by greater than 170% from one 12 months to the following.
The Korean gained grew to become weaker, which helped Samsung’s processors compete higher on the planet market.
Samsung additionally went past reminiscence. It entered right into a $16.5 billion foundry settlement, which strengthened it in opposition to rivals like Taiwan Semi.
Samsung obtained Nvidia’s approval for its HBM3E modules, so they’re now a part of the AI provide chain. And it created cutting-edge CXL hybrid reminiscence that mixes the velocity of DRAM with the endurance of NAND.
All informed, the strikes present Samsung just isn’t solely following the AI development, however shaping the way forward for the infrastructure that makes it work.
That is a pointy distinction to Apple, which depends largely on different firms for {hardware} and focuses on units, software program, and providers, and seems to be late to the AI recreation.
Apple CEO Tim Prepare dinner continues to steer a long-term AI pivot.
Justin Sullivan/Getty Pictures
Apple posts robust outcomes whereas preventing a special battle
Apple isn’t any slouch both, clocking in $94 billion in income and $1.57 in earnings per share resulting in a robust fiscal Q3 2025.
The corporate made a file $27.4 billion in service income, and iPhone 17 gross sales have been up 13% from the earlier 12 months. Mac gross sales, which had been falling within the final a number of quarters, went up by double digits.
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Though Apple executed nicely, it performed a special recreation. Its progress got here from acquainted strengths, together with units, providers, and ecosystem lock-in, not due to the AI revolution that modified the IT trade all through the world.
Samsung makes cash from infrastructure, whereas Apple develops enhancements that can assist customers. The AI financial system continues to be being in-built server rooms and processors, however its current mannequin does not hyperlink on to them.
Apple builds an AI future, however delays outline the timeline
Apple has promised to spend $500 billion within the U.S. over the following 4 years.
It partnered with Foxconn to construct a Texas-based AI server facility, kicking off a long-term plan to determine home AI infrastructure. Apple says the Texas facility will help its “Apple Intelligence” ecosystem, a set of AI capabilities constructed into the iPhone, Mac, and Watch to guard consumer privateness.
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However Apple’s timeframe retains being pushed again.
The tech big delayed key components of its AI deployment, comparable to a giant replace to Siri, till 2026. It opened developer APIs and began including AI to its platforms, however the full impact will not be seen for a couple of extra years.
Apple’s story appears to the long run, however its AI merchandise are primarily nonetheless on advertising slides moderately than monetary experiences.
Apple’s AI dangers: tariffs, lawsuits, and a fancy international technique
Apple is engaged on its AI future, nevertheless it additionally faces fast dangers.
Final quarter, it paid $800 million in tariffs, and it expects to pay $1.1 billion extra within the fourth quarter. To guard itself in opposition to hazard, it added India and Vietnam to its provide chain, though progress stays gradual.
On the similar time, Tim Prepare dinner labored exhausting to spice up enterprise in China by assembly with native leaders and promising to spend extra. It is a robust balancing act in a world that is turning into more and more divided.
Apple can be below authorized scrutiny. Authors sued the company in October for allegedly coaching its basis fashions on copyrighted novels with out permission.
The lawsuit may harm Apple’s fame in AI and make it more durable for the corporate to assert it places privateness first. The company hasn’t disclosed the supply of its coaching information, so critics are guessing for now.
Market alerts develop louder — and extra divided
Apple’s long-term technique continues to be well-liked with traders. The introduction of the iPhone 17 went higher than deliberate, and Wedbush analyst Dan Ives boosted his worth forecast to $310 due to robust improve momentum.
Supporters of Apple say the company at all times delivers, simply by itself schedule.
However sentiment on Apple’s innovation edge is beginning to erode. John Sculley, former Apple CEO, mentioned OpenAI is the largest hazard Apple has confronted in a very long time.
His perception aligns with what many on Wall Avenue are saying: Apple cannot afford to fall behind whereas different firms earn a living from expertise it helped make well-liked.
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Samsung, then again, is at present main by instance.
Its rise in earnings was no accident. Sturdy demand for chips, foundry providers, and reminiscence innovation, linked to the expansion of real-time AI, fueled its outcomes. It did not decelerate, even after shedding a $445.5 million patent within the U.S.
Apple’s subsequent transfer comes October 30
Apple will launch its earnings for the fourth quarter on Oct. 30. This time, traders will not simply care about what number of iPhones are bought.
They will wish to see robust indicators that Apple’s AI initiative is working. Is the Texas server heart up and working? Are builders utilizing Apple’s AI fashions to create issues? Are tariffs hurting earnings greater than anticipated?
These questions have beforehand been addressed by Samsung. It made cash off the AI infrastructure straight away.
Apple should nonetheless show that its main investments and guarantees will begin to repay.
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