Samsung Reaches New Profit Record With Memory Chip Windfall

Samsung Electronics Co. posted another record profit that was just shy of sky-high expectations elevated by surging memory chip prices and relentless spending on AI infrastructure.

The company’s operating profit for the three months through September climbed to about 107.4 trillion won ($80.1 billion), more than eight times the level a year earlier, lifted by demand for high-bandwidth memory.

That was still about 1% short of the average of analysts’ forecasts of 108.7 trillion won, as the South Korean chips-to-smartphones conglomerate grapples with tighter margins in consumer electronics due to higher component prices. Revenue came to 195 trillion won, also lower than expectations, preliminary numbers showed Thursday.

“These are solid numbers,” said Neil Shah, vice president of research at Counterpoint. “They’ve got a lot up their sleeve for next year with HBM, mostly because the full effect hasn’t even landed yet.”

The record numbers and high expectations underscore how sharply the economics of the AI boom have swung in favor of Samsung, SK Hynix Inc. and Micron Technology Inc., as data center developers race to secure memory chips for their AI servers. Counterpoint Research raised its forecast for third-quarter DRAM prices to a 10% to 20% sequential increase, from 5% to 10% previously, saying customers are pulling forward orders and gains in pricing power among suppliers.

The boom has transformed Samsung’s semiconductor business, which only a few years ago was grappling with losses after a punishing downturn in demand. Now, the AI infrastructure buildout is absorbing vast amounts of advanced DRAM, while Samsung is gaining ground on SK Hynix in high-bandwidth memory, the critical chips used alongside Nvidia Corp. and other AI accelerators. The strength of the cycle is also showing up in South Korea’s trade data, with semiconductor exports more than tripling from a year earlier in September.

Analysts on average estimate Samsung’s chip division will post operating profit of 110 trillion won while its electronics unit will report a loss. The Suwon-based company will release a full financial statement on Oct. 29.

Samsung’s shares remain about 25% below their June peak even after the company reported record-breaking results in July. Investors retain a measure of skepticism around soaring profits in a sector prone to boom-and-bust cycles. Samsung and SK Hynix are now expanding production capacity while also increasingly backing companies in the AI sector in a bid to drive more demand for their products.