Samsung posts record Q3 profit on AI chip demand, flags deepening shortage
Samsung Electronics reported a record operating profit of 107.4 trillion won for the third quarter, driven by a 15-fold surge in its semiconductor division's profit on AI chip demand. The company warned that AI-driven demand would far exceed chip supply in 2027.
Samsung Electronics said on Thursday its operating profit rose nearly ninefold to a record high in the third quarter, driven by robust demand for artificial-intelligence (AI) chips. The world's top memory chipmaker flagged it expected the chip shortage to deepen next year.
Samsung reported operating profit of 107.4 trillion won (US$80.04 billion) for the July-to-September period, in line with its estimate and up from 12.2 trillion won a year earlier. Its semiconductor division posted a 15-fold jump in the third quarter from a year earlier to 106.5 trillion won, accounting for almost all of the group's total profit.
The South Korean tech giant echoed its cross-town rival SK Hynix, which reported strong earnings on Wednesday and an upbeat outlook, helping to ease market concerns that AI-driven chip earnings could lose momentum.
"In 2027, the business expects AI infrastructure capital expenditure to reach a historic level as the AI ecosystem expands," Samsung said in a statement. "Increasing AI-driven demand will far exceed the industry supply in comparison with 2026."
While demand for AI chips is expected to remain resilient, concerns about financing for AI infrastructure and rising competition from China have weighed on chip stocks in recent months. Samsung said it would pay 30 trillion won in dividends for the third quarter ended in September, or 4,601 won per share, which was in line with expectations.
Shares in Samsung fell 4.6 per cent in early trade, while SK Hynix rose 0.7 per cent.