Samsung reports record quarterly profits on AI boom
The South Korean tech giant posted a more than 780% jump in third-quarter operating profit from a year earlier to US$80.5 billion.
SEOUL: Samsung Electronics announced a staggering 783.1% increase in third-quarter operating profit, reaching 107.4 trillion won ($80.5 billion), marking the first time any tech company has achieved such a figure. The surge in profit is attributed to the skyrocketing demand for AI semiconductors, as advanced memory chips become integral components in data centres fueling artificial intelligence. The company's net profit also skyrocketed by 514.6% to 75.1 trillion won, while total sales hit 195.2 trillion won.
However, the impressive figures did not meet market expectations, with economists predicting a quarterly operating profit of 108.5 trillion won and net profit of 89.4 trillion won. Samsung's shares experienced a decline of over 2.4% in Seoul markets on Thursday.
Despite the record-breaking profit, Samsung's performance fell short of predictions, signaling potential overvaluation concerns within the AI data centre sector. The company attributes its success to a strategic focus on AI products amidst capacity constraints, resulting in a favorable product mix. Additionally, strong server demand contributed to higher market prices across all applications, further bolstering Samsung's financial performance.
Written by urgent.news from Free Malaysia Today's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
Also reported by 1 other outlet
- Samsung reports record quarterly profits on AI boom freemalaysiatoday.com
