Samsung reports record quarterly profits on AI boom

Samsung Electronics, the world's leading memory chipmaker, announced a staggering 783% increase in third-quarter operating profit on Thursday, driven by a surge in demand for AI semiconductors. The company reported a record-breaking operating profit of 107.4 trillion won (US$80.5 billion), marking the first instance of any tech firm achieving such a milestone.

Net profit surged 514.6% to 75.1 trillion won, while total sales hit 195.2 trillion won. However, the results were below market expectations, with economists forecasting 108.5 trillion won in operating profit and 89.4 trillion won in net profit. Analysts pointed out that the global rush to establish AI data centers has propelled Samsung and its competitors, despite worries about potential overvaluation in the sector.

Samsung's memory business continued its stellar performance by strategically managing product mix, capitalizing on the high demand for AI-related chips despite capacity constraints. Strong server demand led to elevated market prices across various applications, according to the company.