SEOUL, Oct 30 (Reuters) - Samsung Electronics ( SSNLF )

expects continued strength in the chip market,

driven by AI demand, it said on Thursday after reporting a 32%

rise in third-quarter operating profit, its highest in over

three years.

The turnaround of the world's top memory chipmaker reflects

the unexpected boom in conventional chip prices, with supply

squeezed by the industry's shift to producing advanced AI chips,

while demand is rising for data centres.

Samsung's chip business, its main cash cow, posted an

operating profit of 7 trillion won ($4.92 billion) in the third

quarter, up 80% from a year earlier.

"The semiconductor market is expected to remain strong,

driven by ongoing AI investment momentum," Samsung said in a

statement.

The world's largest maker of memory chips posted 12.2

trillion won in operating profit for the July to September

period, in line with its estimate of 12.1 trillion won.

Samsung shares were up 2.7% after the results.

"Looking ahead to Q4, the rapid growth of the AI industry is

expected to open up new market opportunities," Samsung said.

($1 = 1,421.4800 won)