Samsung Electronics Co. Ltd. today confirmed that it has set a new world record for quarterly profit in the technology industry.
The company posted an impressive operating profit of 107.44 trillion won ($80.5 billion) in the third quarter due to rising demand for memory chips that power the artificial intelligence boom.
The company also reported revenue of 195.25 trillion won in the quarter, up 127% from the same period last year. In addition, it said the board approved a cash dividend of 30 trillion won for shareholders. Samsung’s operating profit rose more than 780% year-on-year, while net profit rose 515% to 75.15 trillion won.
The impressive results confirmed what Samsung had forecast in its preliminary profit forecast earlier this month, making it the first South Korean company in any industry to surpass the 100 trillion won mark in quarterly operating profit.
Samsung is benefiting from unprecedented demand for memory chips, driven by heavy investments by hyperscalers in AI infrastructure. This demand has led to a global shortage of memory chips and rising prices. The lion’s share of Samsung’s sales and profits came from its Device Solutions division, which houses its semiconductor business. The company is one of the top three memory chip suppliers in the world and has helped the unit generate a massive 147.1 trillion won in revenue and 106.5 trillion won in operating profit.
Samsung’s results come just a day after Korean rival SK hynix Inc. itself reported strong earnings and offered an upbeat outlook. The company echoed its rival’s comments when it predicted the global memory chip shortage would worsen in fiscal 2027. The companies’ strong performances will help ease market concerns that the AI chipmaker’s profits could lose momentum if the AI boom falters due to funding concerns. Samsung shares rose 2% in early trading in South Korea on Thursday morning.
Samsung’s memory chip business could become even more profitable in the coming months. A new partnership with French AI model maker Mistral AI was announced during the quarter. As part of this collaboration, Samsung plans to integrate AI into its semiconductor design and manufacturing workflows with the aim of optimizing these processes.
Samsung’s display business generated revenue of 8 trillion won and operating profit of 1.1 trillion won. However, its MX and networks division, which includes sales of Samsung smartphones, posted an operating loss of 0.6 trillion won on total revenue of 37.7 trillion won.
Samsung’s smartphone sales have been a direct victim of the rising cost of memory chips, reflected in the higher prices of many of its handsets this year. However, the company is hoping for a rebound in the fourth quarter, which is traditionally the peak season for smartphone sales and focuses on new flagship devices such as the Galaxy S26 series, Galaxy Z Fold8 Ultra and Z Fold8.
Samsung said it will pay 30 trillion won in dividends to shareholders for the third quarter, equivalent to about 4,601 won per share.
Photo: Samsung
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