Samsung posts record profit in Q3 on AI chip boom

Samsung Electronics reported a record-breaking operating profit of 107.4 trillion won ($80.04 billion) for the third quarter, marking a nearly ninefold increase compared to the previous year's 12.2 trillion won. The surge in profit was primarily attributed to soaring demand for artificial intelligence (AI) chips. Despite investor caution regarding the sustainability of AI spending, Samsung's performance has helped alleviate market concerns about the potential slowdown of AI-driven chip earnings.

SK Hynix, Samsung's cross-town rival, also released strong earnings on Wednesday, further bolstering the confidence in the sector. Samsung's management indicated that the chip supply shortage would intensify in the coming year. The company announced a dividend payout of 30 trillion won for the third quarter, translating to 4,601 won per share.