Samsung posts record profit in Q3 on AI chip boom
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Samsung reported an operating profit of 107.4 trillion won (S$103.17 billion) for the July-to-October period.
PHOTO: REUTERS
- Samsung reported a record third-quarter operating profit of 107.4 trillion (S$103.17 billion) won, nearly nine times higher than a year earlier, as strong demand for AI chips boosted results.
- Investors still worry about how long AI spending will last, but Samsung and SK Hynix shares rose after both firms gave strong earnings and outlooks.
- Samsung said chip shortages would deepen in 2027 and it will pay 30 trillion won in third-quarter dividends, or 4,601 won per share.
AI generated
SEOUL – Samsung Electronics said on Oct 29 its operating profit rose nearly ninefold to a record high in the third quarter, driven by robust demand for AI chips, even as investors remained wary about the durability of spending on artificial intelligence.
The world’s top memory chipmaker reported operating profit of 107.4 trillion won (S$103.17 billion) for the July-to-October period, in line with its estimate and up from 12.2 trillion won a year earlier.
Its cross-town rival SK Hynix on Oct 28 reported strong earnings and an upbeat outlook, helping to ease market concerns that AI-driven chip earnings could lose momentum, driving up shares of Samsung and SK Hynix.
Echoing SK Hynix’s outlook on demand, Samsung said the chip supply shortage would deepen in 2027.
Samsung said it would pay 30 trillion won in dividends for the third quarter ended in September, or 4,601 won per share. REUTERS