Samsung reaches new profit record with memory chip windfall

Samsung Electronics posted another record profit as surging memory chip prices and relentless spending on artificial-intelligence infrastructure boosted its earnings.
The company’s operating profit for the three months through September climbed to about 107.4 trillion won (US$80.1 billion), more than eight times the level a year earlier. Analysts on average had forecast 108.7 trillion won in operating profit. Revenue came to 195 trillion won, lower than expected, preliminary numbers showed Thursday.

The record numbers and elevated expectations underscore how sharply the economics of the AI boom have swung in favour of Samsung, SK Hynix and Micron Technology, as data centre 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 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 to post operating profit of 110 trillion won while its electronics unit to report a loss. The Suwon-based company will release a full financial statement around the end of this month.

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.