Samsung Electronics is not leaving any cash on the table, if its third-quarter forecast is any indication.
The tech giant hopes to make $60.2 billion in sales and $8.5 billion in operating profit, almost three times what it generated in the second quarter. This was Samsung’s most lucrative quarter in three years as it aggressively returns to the core of the AI hardware market.
Samsung took advantage of the growing demand for high-bandwidth memory processors used to run generative AI workloads. It elevated the cost of NAND flash and DRAM by more than 170% from one year to the next.
The Korean won became weaker, which helped Samsung’s processors compete better in the world market.
Samsung also went beyond memory. It entered into a $16.5 billion foundry agreement, which strengthened it against competitors like Taiwan Semi.
Samsung obtained Nvidia’s approval for its HBM3E modules, so they are now part of the AI supply chain. And it created cutting-edge CXL hybrid memory that combines the speed of DRAM with the endurance of NAND.
All told, the moves show Samsung is not only following the AI trend, but shaping the future of the infrastructure that makes it work.
That’s a sharp contrast to Apple, which relies largely on other companies for hardware and focuses on devices, software, and services, and appears to be late to the AI game.
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Apple posts strong results while fighting a different battle
Apple is no slouch either, clocking in $94 billion in revenue and $1.57 in profits per share leading to a strong fiscal Q3 2025.
The company made a record $27.4 billion in service revenue, and iPhone 17 sales were up 13% from the previous year. Mac sales, which had been falling in the last several quarters, went up by double digits.
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Although Apple executed well, it played a different game. Its growth came from familiar strengths, including devices, services, and ecosystem lock-in, not because of the AI revolution that changed the IT industry throughout the world.
Samsung makes money from infrastructure, while Apple develops enhancements that will help consumers. The AI economy is still being built in server rooms and processors, but its present model doesn’t link directly to them.
Apple builds an AI future, but delays define the timeline
Apple has promised to spend $500 billion in the U.S. over the next four years.
It partnered with Foxconn to build a Texas-based AI server facility, kicking off a long-term plan to establish domestic AI infrastructure. Apple says the Texas facility will support its “Apple Intelligence” ecosystem, a set of AI capabilities built into the iPhone, Mac, and Watch to protect user privacy.
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But Apple’s timeframe keeps being pushed back.
The tech giant delayed key parts of its AI deployment, such as a big update to Siri, until 2026. It opened developer APIs and started adding AI to its platforms, but the full effect won’t be seen for a few more years.
Apple’s tale looks to the future, but its AI products are primarily still on marketing slides rather than financial reports.
Apple’s AI risks: tariffs, lawsuits, and a complex global strategy
Apple is working on its AI future, but it also faces immediate risks.
Last quarter, it paid $800 million in tariffs, and it expects to pay $1.1 billion more in the fourth quarter. To protect itself against danger, it added India and Vietnam to its supply chain, although growth remains gradual.
At the same time, Tim Cook worked hard to boost business in China by meeting with local leaders and promising to spend more. It’s a tough balancing act in a world that’s becoming increasingly divided.
Apple is also under legal scrutiny. Authors sued the corporation in October for allegedly training its foundation models on copyrighted novels without permission.
The lawsuit might hurt Apple’s reputation in AI and make it harder for the company to claim it puts privacy first. The corporation hasn’t disclosed the source of its training data, so critics are guessing for now.
Market signals grow louder — and more divided
Apple’s long-term strategy is still popular with investors. The introduction of the iPhone 17 went better than planned, and Wedbush analyst Dan Ives boosted his price forecast to $310 because of strong upgrade momentum.
Supporters of Apple say the corporation always delivers, just on its own schedule.
But sentiment on Apple’s innovation edge is starting to erode. John Sculley, former Apple CEO, said OpenAI is the biggest danger Apple has faced in a long time.
His insight aligns with what many on Wall Street are saying: Apple can’t afford to fall behind while other companies make money from technology it helped make popular.
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Samsung, on the other hand, is currently leading by example.
Its rise in profits was no accident. Strong demand for chips, foundry services, and memory innovation, linked to the growth of real-time AI, fueled its results. It didn’t slow down, even after losing a $445.5 million patent in the U.S.
Apple’s next move comes October 30
Apple will release its earnings for the fourth quarter on Oct. 30. This time, investors won’t just care about how many iPhones are sold.
They’ll want to see strong indicators that Apple’s AI initiative is working. Is the Texas server center up and running? Are developers using Apple’s AI models to create things? Are tariffs hurting profits more than expected?
Those questions have previously been addressed by Samsung. It made money off the AI infrastructure right away.
Apple must still prove that its major investments and promises will start to pay off.
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