Samsung's Quarterly Profit Hits Record as AI Memory Sales Boom
Samsung estimated third-quarter operating profit at 107.4 trillion won, or about $80 billion, beating consensus and marking the first time a South Korean company exceeded 100 trillion won in a quarter. Sales increased 126.6% to 195 trillion won, and the operating margin reached a record 55.1%, though the preliminary release lacked divisional breakdowns. The chip unit likely drove the result as AI data centers boosted demand for HBM and server DRAM, while Samsung's stock trades at a low forward earnings multiple on expectations that memory prices may be near a peak.
Samsung’s preliminary third-quarter operating profit reached 107.4 trillion won, roughly $80 billion, exceeding the 105.75 trillion won consensus by 1.6% and jumping 782.5% from a year earlier. Revenue climbed 126.6% to 195 trillion won, producing a record 55.1% operating margin. It was the first South Korean company to top 100 trillion won in a quarter. Full segment results are due October 29.
Without divisional figures, Korean press estimates placed chip-unit profit at or slightly above the company total, as AI data centers lifted HBM and server DRAM demand; phone, TV, and appliance units likely lost money on higher component costs. Won-based profit growth slowed from about 54% between Q1 and Q2 to about 21% between Q2 and Q3.
The result could strengthen South Korea’s export outlook and benefit Samsung shareholders, employees, and suppliers through bonuses or investment. It may also deepen reliance on memory-chip cycles, leaving jobs and local demand exposed if prices cool. Consumers might feel indirect effects if component costs shape device pricing, while AI-driven demand could intensify pressure on energy and materials. These are possibilities, not certainties.