Samsung Electronics is on track for a record quarter, projecting an operating profit of 107.4 trillion won (roughly USD 80.1 billion) for the July–September period. This figure is nearly nine times higher than the company’s profit from the same time last year. Additionally, reported revenue reached 195 trillion won. Although these results establish new benchmarks across both areas, they still fell short of analysts’ predictions.
This financial surge is primarily driven by robust sales of artificial intelligence-related memory chips. Commenting on this trend, Sanjeev Rana, head of North Asia semiconductor research at CLSA Securities Korea, stated, “We remain bullish on the memory cycle and Samsung Electronics. Demand continues to exceed supply and HBM pricing is poised for a big step up in 2027.”
These figures highlight the profound impact of AI on the semiconductor industry. As the world’s largest memory chip manufacturer, Samsung is experiencing a surge in demand that outpaces supply, resulting in higher prices. High-bandwidth memory (HBM) is a critical component of the AI boom, and Samsung is actively working to close the gap with its local rival, SK Hynix, in the HBM market.
AI data centers require vast amounts of memory to store and transfer data while artificial intelligence models operate, complementing powerful processors. HBM is positioned adjacent to advanced AI processors to assist them in managing massive data volumes at high speeds. Furthermore, standard memory chips are seeing high demand as organizations construct additional AI servers.
Because orders are escalating, manufacturers are struggling to keep pace, which has driven memory prices upward. DRAM prices are anticipated to climb by an additional 10% to 15% in the fourth quarter, marking a more gradual increase compared to previous spikes.
Also Read: Samsung Posts Record Q2 Revenue as AI Memory Chip Demand Drives Profit Surge
Samsung is Right in the Middle of the AI Boom
Samsung is capitalizing on this surge. Its HBM shipments are increasing, and elevated memory prices are bolstering its semiconductor division. To satisfy demand, the company is also expanding its production capacity.
Nevertheless, not all divisions within Samsung are profiting from this momentum. Increased chip expenses are straining its consumer electronics and smartphone operations, with the mobile division anticipated to post a quarterly loss.
Samsung’s expected record profit demonstrates the powerful role AI plays in fueling the semiconductor market. Because AI data centers require unprecedented levels of memory, this demand continues to support Samsung’s chip division. At present, the artificial intelligence boom remains a vital catalyst for the company’s expansion.
