Samsung's AI riches lag Nvidia's money machine
Samsung is set to earn $282 billion in operating profit this year, more than Nvidia, but its commodity memory business, heavy capital spending and pressure to boost shareholder returns are expected to keep its valuation multiple far below its U.S. peer. Samsung forecast third-quarter operating profit of about 107.4 trillion won, or $80 billion, up from 12.2 trillion won a year earlier.
1. Profit outlook
Samsung is set to earn $282 billion in operating profit this year, more than Nvidia. Its commodity memory business, hefty capital spending and rising pressure to boost shareholder returns will keep its valuation multiple far below its U.S. peer. On October 8, Samsung forecast operating profit of approximately 107.4 trillion won, or $80 billion, for the three months through September, compared with 12.2 trillion won in the same quarter last year. The company plans to release detailed results, including a breakdown by business division, on October 29.
