Samsung Reports Record KRW 107.4 Trillion Quarterly Profit as AI Chip Sales Surge

Samsung Electronics reported record third-quarter operating profit of KRW 107.4 trillion on Thursday, October 29, confirming the scale of an artificial-intelligence-driven boom in memory chips while disclosing that its consumer-device operations remained under pressure.

The South Korean technology group recorded KRW 195.3 trillion in consolidated revenue for the three months ended September 30, up 14% from the previous quarter. Operating profit rose to KRW 107.4 trillion, the first quarterly result above KRW 100 trillion reported by the company. The headline earnings figures broadly matched preliminary guidance issued earlier in October; the finalized release supplied a detailed breakdown of divisions and investment plans.

The Device Solutions semiconductor division generated KRW 147.1 trillion in revenue and KRW 106.5 trillion in operating profit, accounting for nearly all of the group's operating earnings. Samsung attributed the division's performance to demand for server memory, higher memory prices and expanded sales of HBM4, a high-bandwidth memory product used in advanced computing systems. The division also reported stronger demand for server solid-state drives.

The company's other businesses presented a contrasting picture. Device eXperience, which includes consumer electronics, recorded an operating loss of KRW 0.8 trillion. Samsung Display reported KRW 1.1 trillion in operating profit. The mobile and networks businesses together reported an operating loss of KRW 0.6 trillion, with higher costs weighing on earnings despite improved revenue.

Independent reporting by Korea JoongAng Daily said the group's revenue rose 126.9% from a year earlier and net profit reached KRW 75.1 trillion. The outlet reported that revenue and net profit were below the analyst forecasts it cited, underscoring the difference between record operating profit and the full set of market expectations.

Samsung reported third-quarter capital expenditure of KRW 29 trillion and projected full-year spending of approximately KRW 84.4 trillion. It also announced a third-quarter cash dividend totaling KRW 30 trillion. Management expects demand for memory used in AI infrastructure to remain strong, but those statements are forecasts rather than confirmed future sales.

The finalized results highlight how semiconductor profitability is currently offsetting weaker margins elsewhere in Samsung's portfolio. The durability of the earnings surge will depend in part on future AI infrastructure investment, memory supply and prices.