Samsung Posts Biggest Profit Since 2022 on AI Chip Boom
Samsung Electronics has reported its largest quarterly profit in over three years, driven by surging demand for memory chips as global artificial intelligence development accelerates.
Key Financial Highlights
- Operating profit: 12.1 trillion won (S$11 billion) for July-September quarter
- Revenue: 86 trillion won
- Results significantly exceeded analyst projections of 9.7 trillion won
The preliminary earnings report, released on October 14, shows Samsung’s remarkable turnaround, with shares surging more than 60% since early June. The company’s semiconductor division, which typically contributes 50-70% of annual profits, showed strong recovery signs.
AI Chip Breakthroughs
Samsung is positioning itself to capitalize on the AI boom, making significant progress with high-bandwidth memory (HBM) chips. The company has secured an order from Advanced Micro Devices and is awaiting final approval for its HBM3E chips from market leader Nvidia.
Investors are betting Samsung can catch up with smaller rival SK Hynix in supplying HBM to Nvidia and other AI applications. Both Korean chipmakers recently struck agreements to supply chips to OpenAI’s Stargate project, with demand projections exceeding twice the current global HBM capacity.
Market Recovery and Future Outlook
Rising memory chip prices and strong AI demand have prompted dozens of analysts to raise their price targets for Samsung. This marks a significant comeback after years of setbacks that allowed SK Hynix to take an early lead in the AI chip arena.
During its July earnings call, Samsung projected “meaningful expansion” in high-end memory products for servers in the second half of 2025, indicating continued confidence in the AI-driven market recovery.
