Samsung Electronics announced a record operating profit for the third quarter of 2026, fueled by robust demand for artificial intelligence semiconductors. Despite the milestone, the company’s stock declined as investors evaluated the company’s outlook for the memory-chip sector and the postponement of its next shareholder-return policy until January.
During the July-September period, the South Korean tech conglomerate achieved an operating profit of KRW 107.4 trillion (USD 80 billion), a substantial increase from KRW 12.2 trillion during the same period the previous year. The semiconductor division accounted for nearly the entire group total, bringing in KRW 106.5 trillion in operating profit.
AI Chip Demand Drives Profit Growth
According to Samsung, demand for high-bandwidth memory (HBM)—essential for data centers and AI processors—continues to outpace manufacturing capacity. The firm verified that its HBM inventory for 2027 is already completely committed, as key clients request further allocations.
The company anticipates that AI infrastructure investment will hit unprecedented levels next year, with memory chip demand heavily surpassing available industry supply relative to 2026. Samsung projects that these constrained market conditions will persist through 2028, reflecting a more cautious stance than competitor SK Hynix, which has predicted a deficit lasting until 2030.
Following a 62% increase in capital expenditures this year to KRW 76.8 trillion, Samsung intends to further boost semiconductor investments. The firm is additionally working to establish long-term supply contracts to lock in demand and refine manufacturing schedules.
Shares Fall as Investors Assess Outlook
Even with the record financial results, Samsung shares fell by up to 6.2% during Thursday morning trading. Market participants had anticipated a more robust forecast and explicit pledges regarding shareholder payouts, particularly in the wake of optimistic earnings and capital-return disclosures from SK Hynix.
Samsung indicated that its upcoming shareholder-return strategy will be settled in January. Prior frameworks outlined third-quarter dividends of KRW 30 trillion alongside annual shareholder payouts ranging from KRW 90 trillion to KRW 110 trillion.
Also Read: Samsung Posts Record Q2 Revenue as AI Memory Chip Demand Drives Profit Surge
Foundry Business Faces Challenges
The company’s contract manufacturing, or foundry, division continues to operate at a loss, creating a drag on overall semiconductor income. Nonetheless, Samsung noted a rise in revenue derived from logic chips utilized in HBM offerings, alongside newly secured orders for advanced 2-nanometre semiconductors.
Mass production at its Texas facility in Taylor is slated to kick off next year, encompassing processors destined for Tesla. Concurrently, rising memory-chip expenses resulted in an operating loss of KRW 800 billion for Samsung’s mobile division, underscoring the strain that escalating component costs impose on consumer electronics divisions.
