Samsung Electronics is set to post its highest quarterly profit in more than three years, driven by surging global demand for conventional memory chips amid the artificial intelligence boom. The company estimated an operating profit of 12.1 trillion won (8.5 billion dollars) for the July to September quarter, a 32 per cent rise from a year earlier and well above market expectations of 10.1 trillion won. This would mark Samsung’s strongest quarterly performance in 13 quarters.
The world’s leading memory chipmaker also expects revenue to climb 8.7 per cent year-on-year to a record 86 trillion won, aided by favourable currency movements. Analysts said Samsung’s surprise earnings were primarily fuelled by robust demand for commodity DRAM and NAND chips, which saw prices soar due to limited supply and rising data centre requirements.
“The third-quarter earnings surprise came from the chip business,” said a senior analyst at a leading investment firm. Experts noted that although Samsung’s progress in supplying advanced high bandwidth memory (HBM) chips to key clients such as Nvidia was slower than expected, higher prices for conventional memory chips helped offset the shortfall.
Samsung also benefited from lower losses at its foundry unit, where improved utilisation rates reduced cost pressures. Analysts attributed the supply shortage to the industry’s focus on advanced chip production in recent years, which limited output of traditional memory chips and pushed up prices. According to market research, prices of some DRAM chips used in servers, smartphones, and computers jumped 171.8 per cent in the third quarter compared with last year.
Industry experts predict the tight supply of commodity memory chips will continue into 2026, as tech companies expand investments in AI infrastructure, data centres, and high-performance servers. Analysts said Samsung has made progress in delivering its latest 12-layer HBM3E chips to Nvidia and is now focusing on developing next-generation HBM4 products, with commercial shipments expected to begin in 2026.
Samsung, which has led the global memory chip market for three decades, faces increasing competition in advanced AI chips, having recently lost its top DRAM market share to SK Hynix. Still, its strong position in commodity memory and data centre demand places it among the biggest beneficiaries of the AI-driven chip surge.
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