Samsung Electronics has announced a dramatic surge in quarterly earnings, with operating profit projected to reach 107.4 trillion won (£61bn; $80bn) for the three months ending September—a nine-fold increase compared with the same period last year. This marks the company's fourth consecutive quarter of record profits, driven primarily by explosive demand for memory chips that power artificial intelligence data centres worldwide.
The South Korean technology conglomerate released preliminary figures showing total revenue of 195 trillion won, representing a 126.6% year-on-year increase and a 13.7% rise from the previous quarter. According to , the projected operating profit exceeded the LSEG SmartEstimate of 106.1 trillion won, signalling stronger-than-expected performance across the company's chip operations.
Samsung ranks among the world's largest manufacturers of memory chips alongside South Korean rival SK Hynix and American chipmaker Micron, all of which produce semiconductors essential for artificial intelligence companies such as Nvidia. The extraordinary demand for these components has created a supply-demand imbalance that continues to benefit chip manufacturers. According to reporting, tight availability of conventional DRAM and NAND memory, combined with surging demand for high-bandwidth memory (HBM) used in AI applications, has driven chip prices significantly higher.
Beyond its semiconductor operations, Samsung is positioned to benefit from its consumer electronics division. The company launched new folding smartphones in August, including the Galaxy Fold and S26 models, which are expected to contribute to overall profitability in the third quarter.
What is driving the profit surge?
The primary catalyst for Samsung's exceptional earnings is the global race to build artificial intelligence infrastructure. Data centres worldwide require vast quantities of memory chips to train and run AI models, creating unprecedented demand that has outpaced supply. This shortage has allowed manufacturers to command premium prices for their products, translating directly into higher margins and profits.
The operating margin for the quarter is estimated at 55.1%, which Yonhap reported represents the highest in Samsung's corporate history. This exceptional profitability reflects both the strength of demand and the company's ability to capitalize on the supply constraints affecting the entire industry.
When will full results be available?
Samsung has not provided a net-profit estimate or a breakdown of results by individual business divisions in its preliminary guidance. The company is scheduled to release comprehensive third-quarter financial results on October 29, at which point investors and analysts will receive detailed information about performance across its various operations, including semiconductors, consumer electronics, and other divisions.
How long will the chip shortage persist?
Industry analysts expect the supply-demand imbalance for memory chips to extend well into 2027. According to , the supply-demand gap could potentially widen as artificial intelligence demand continues to absorb an increasing share of global memory chip capacity, suggesting that elevated prices and strong profitability may persist for manufacturers like Samsung.
Key Facts
- Samsung's third-quarter operating profit is projected at 107.4 trillion won, a nine-fold increase year-on-year and the company's fourth consecutive record quarter
- Revenue reached 195 trillion won, up 126.6% compared with the same quarter last year
- The operating margin of 55.1% is Samsung's highest on record
- Memory chip shortages driven by AI data centre demand are expected to persist into 2027
- Detailed financial results including divisional breakdowns will be released on October 29
