Global AI demand: Samsung achieves record profit thanks to AI boom
South Korea's largest company, Samsung Electronics, has increased its operating profit ninefold. Nevertheless, investors are reacting disappointedly.
Samsung Electronics has reported a record profit this quarter, driven by soaring demand for semiconductors. The South Korean electronics giant saw its operating profit nearly nine times higher year-on-year, reaching 107.4 billion won (approximately 72 billion euros), the company announced. Samsung Electronics' revenue in the third quarter was just over 131 billion euros.
The company also announced a dividend payout totaling around 20 billion euros. Despite these impressive results, Samsung Electronics failed to meet the high expectations set by investors, with its stock falling over four percent immediately after publishing the financial figures. The company anticipates continued high demand for chips in 2027 as well.
The global semiconductor industry benefits greatly from the expansion of the global AI infrastructure. The high demand for powerful memory chips drives prices and creates capacity constraints. Samsung expects that chip demand will significantly outpace supply in the coming year. SK Hynix, the company's main competitor, also reported strong business results and an optimistic outlook recently.
The semiconductor boom largely stems from the hype surrounding artificial intelligence (AI). The rapid expansion of AI data centers consumes massive amounts of IT hardware, including memory chips. High-bandwidth memory (HBM) chips, in particular, are in great demand. Overall, memory chip prices have surged significantly.
Written by urgent.news from Handelsblatt's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
