Samsung reaches new profit record with memory chip windfall

SEOUL: Samsung Electronics announced a record profit amid surging memory chip prices and increased investments in artificial intelligence infrastructure. The company's operating profit for the quarter ending September soared to approximately 107.4 trillion won (US$80.1 billion), more than eightfold compared to the previous year.

Analysts had anticipated an operating profit of around 108.7 trillion won. Revenue for the period totaled 195 trillion won, falling short of expectations. Despite the record profit and high expectations, Samsung's revenue remained lower than anticipated. The remarkable figures and elevated expectations highlight the significant impact of the AI boom on Samsung, SK Hynix, and Micron Technology, as data center developers scramble to secure memory chips for their AI servers.

Counterpoint Research has revised its forecast for third-quarter DRAM prices, projecting a 10% to 20% sequential increase, up from the previous forecast of 5% to 10%. This surge in demand and pricing power among suppliers underscores the transformative nature of the AI infrastructure buildout on Samsung's semiconductor business.