Samsung's Operating Profit Jumps Nearly Ninefold To Record $80.1 Billion, Misses Estimates Amid AI Chip Boom

Samsung Electronics reported a nearly ninefold increase in quarterly operating profit, supported by soaring demand for memory chips used in artificial intelligence (AI) infrastructure. However, the record earnings fell short of market expectations.

According to a report by Bloomberg, the South Korean technology giant posted preliminary operating profit of 107.4 trillion won ($80.1 billion) for the quarter ended September, while revenue reached 195 trillion won.

Both figures were below analysts' estimates, reflecting the exceptionally high expectations surrounding the global AI investment boom.

Samsung shares remained largely unchanged during early trading in Seoul on Thursday.

AI chip demand drives Samsung's record profit

The rapid expansion of AI infrastructure has increased demand for advanced memory products, particularly high-bandwidth memory (HBM) used alongside Nvidia processors and other AI accelerators.

Demand for flash memory and low-power chips has also strengthened, benefiting major manufacturers including Samsung, SK Hynix and Micron Technology.

Counterpoint Research increased its forecast for third-quarter dynamic random-access memory (DRAM) prices to a sequential rise of 10% to 20%, compared with its earlier estimate of 5% to 10%.

The research firm attributed the revision partly to customers advancing their orders.

Samsung faces investor caution despite semiconductor boom

The AI spending surge has transformed Samsung's semiconductor operations following an earlier industry downturn that resulted in substantial losses.

The recovery has also strengthened South Korea's exports, with semiconductor shipments more than tripling year-on-year in September.

Analysts expect Samsung's chip division to report operating profit of 110 trillion won, while its electronics business is projected to record a loss.

The company will publish its detailed financial results on Oct 29.

Despite record earnings announced in July, Samsung shares remain approximately 25% below their June peak.

Investors remain cautious about the semiconductor industry's historically cyclical performance.

Meanwhile, Samsung and SK Hynix are expanding manufacturing capacity and increasing investments in AI companies to support future demand.