Samsung profit soars to 3-year high on AI chip surge

Samsung Electronics ￰0￱ reported its highest quarterly profit in over three years, driven by a surge in demand for AI-related memory ￰1￱ world’s biggest memory chipmaker and South Korea’s most valuable company is riding the artificial intelligence wave that has reshaped the global semiconductor market. Samsung’s operating profit in the July-September quarter jumped to 12.1 trillion won ($8.5 billion), surpassing analysts’ forecasts of about 9.7 trillion won, according to preliminary results released on ￰2￱ increased to 86 trillion won, a steep gain from the previous year’s 67.4 trillion ￰3￱ surge drives record chip profits The performances represented Samsung’s best since early 2022, and suggested that its chip division was rebounding strongly from a two-year industry downturn.

Now, the recovery in memory chip pricing and global AI development is causing profits to ￰4￱ DRAM prices increased by roughly 172% year-over-year in the third quarter, and NAND flash memory also posted double-digit growth, according to ￰5￱ chips are crucial for the AI servers that underpin large language models, such as ChatGPT and Gemini, as well as data centers operated by tech giants like Google, Amazon, and ￰6￱ has been scrambling to narrow the gap behind its smaller competitor, SK Hynix, which currently dominates the market for high-bandwidth memory (HBM) chips used in AI ￰7￱ of Nvidia’s HBM3E chips, which are crucial for training and running AI models, are provided by SK ￰8￱ Samsung is quickly gaining ￰9￱ recently received certification from Nvidia for its 12-layer HBM3E chips and secured an order from AMD, enabling it to tap into the fast-growing AI server ￰10￱ certification will enable Samsung to initiate mass shipments within the next few months, positioning it to compete head-to-head with SK Hynix and Micron, according to people familiar with the ￰11￱ bet big on Samsung’s future in ￰12￱ strong quarter has helped lift investor confidence that Samsung is on track to regain leadership in the semiconductor ￰13￱ shares have surged more than 60% since the beginning of June, driven by hopes for AI demand and a recovery in memory ￰14￱ Samsung and SK Hynix recently signed deals to provide chips for OpenAI’s “Stargate” project, an ambitious initiative to construct one of the world’s largest AI data centers.

Stargate’s estimated demand could potentially consume 40% of global DRAM production, underscoring the significant demand for processing power from ￰15￱ Jae-kyung, an analyst at Daishin Securities, said Samsung’s profit surge marked a watershed moment, noting that the company was not only recovering but also re-emerging at the forefront of the AI ￰16￱ memory as well as beyond, Samsung’s display and mobile divisions performed ￰17￱ premium smartphone panel earnings benefited from robust sales of foldable devices and OLED ￰18￱ company’s Galaxy Z Fold6 and Flip6 models had helped prop up the mobile income line, contributing to a less lopsided growth picture among ￰19￱ predict that Samsung’s semiconductor profit will surge through 2025, driven by faster-than-anticipated global demand for AI ￰20￱ company informed investors on its most recent earnings call in July that it anticipated strong growth in high-end memory products for servers in the second half of the year.

Still, risks ￰21￱ faces challenges related to geopolitical tensions, export controls, and supply chain disruptions — especially after the United States recently tightened restrictions on exporting chip technology to ￰22￱ company has also been under pressure to improve its profitability in the foundry business, where it trails its Taiwanese rival, ￰23￱ from Morgan Stanley, Citi, and Goldman Sachs have all updated their Samsung share price forecasts in the past week to reflect high, continued memory prices and better chip ￰24￱ to Bloomberg Intelligence analyst Masahiro Wakasugi, Samsung has returned to the game, describing the nexus of AI-driven demand, squeezed supply, and improved technology across its products — as well as high interest rates — as having created a “double whammy” for ￰25￱ up to Bybit and start trading with $30,050 in welcome gifts