Samsung’s Q3 profit surges 32% as AI chip demand drives record revenue

Samsung Electronics reported a 32.5% increase in operating profit for the third quarter, reaching 12.2 trillion won ($8.6 billion), driven by surging demand for memory chips used in AI applications. The South Korean tech giant also achieved record quarterly revenue of 86 trillion won ($60.4 billion), positioning itself to capitalize on continued AI-driven growth in the semiconductor market.

The big picture: Samsung’s dual strength in both components and finished products allows it to benefit from multiple sides of the AI boom, from manufacturing the memory chips that power AI systems to selling smartphones enhanced by AI features.

Key financial highlights: The company’s performance marks a dramatic turnaround from previous quarters.
• Operating profit jumped 160% from the previous quarter, when semiconductor earnings were weighed down by inventory adjustments and China export restriction costs.
• Revenue rose nearly 9% year-over-year to 86 trillion won, setting a new quarterly record.
• The semiconductor division alone posted 7 trillion won in operating profit for Q3.

AI momentum across the industry: Samsung isn’t alone in riding the AI wave among South Korean chipmakers.
• SK Hynix, another major Korean semiconductor company, reported record operating profit of 11.4 trillion won ($8 billion) on Wednesday, also attributing growth to AI demand.
• Both companies are seeing strong sales in high-bandwidth memory (HBM) chips, which are essential components for AI applications.

Product pipeline: Samsung is aggressively expanding its AI-focused chip offerings to meet growing demand.
• The company’s advanced HBM3E memory chips are “currently in mass production and being sold to all relevant customers.”
• Samples of next-generation HBM4 chips are already being shipped to key clients.
• Strong sales of high-bandwidth memory chips drove the semiconductor division’s robust performance.

What they’re saying: “The semiconductor market is expected to remain strong, driven by ongoing AI investment momentum,” Samsung said in a statement, indicating confidence that AI-related demand will continue supporting growth in coming quarters.