❯ Samsung’s quarterly operating profit rises about 783% on AI memory demand

Record sales and profitSamsung’s October 29 results showed quarterly revenue of KRW195.3 trillion and operating profit of KRW107.4 trillion, both records and approximately 127% and 783% above a year earlier. Its semiconductor DS division generated KRW147.1 trillion of revenue and KRW106.5 trillion of operating profit, accounting for almost all group operating profit.

Demand extends beyond HBMSamsung said HBM4 sales expanded significantly while it addressed growing server SSD demand. Strong server demand also pushed memory prices higher across applications. HBM supplies high-bandwidth data to AI accelerators, server DRAM supports active computation, and SSDs store and retrieve large datasets. AI infrastructure growth can therefore support several layers of memory demand.

Component costs also create pressureSamsung’s Device eXperience division reported a KRW0.8 trillion operating loss, while mobile and network operations faced cost pressure. The results illustrate how stronger memory demand supports chip suppliers’ sales and pricing while higher component costs can squeeze businesses that manufacture finished devices.

Investment follows AI demandSamsung expects approximately KRW84.4 trillion of capital spending in 2026, including KRW76.8 trillion for semiconductors. It plans to expand HBM, server DDR5 and QLC SSD sales, anticipates strong AI infrastructure investment in 2027 and is seeking multiyear contracts for a more stable sales base.

▮ SIGNALThe memory boom distributes benefits and costs unevenly: chip suppliers and businesses buying those chips can experience opposite profit trends.