Samsung Electronics reported a record-high operating profit for the third quarter, as an investment boom in AI infrastructure drove sustained explosive demand for memory chips, allowing the world's largest memory chipmaker to reap substantial rewards.
On Thursday, Samsung released preliminary earnings guidance, stating that its consolidated operating profit for the third quarter of 2026 (July to September) reached approximately 107.4 trillion won (about $80.1 billion), a nearly ninefold surge compared with 12.17 trillion won in the same period last year, marking the first time in the company's history that quarterly operating profit has exceeded 100 trillion won.
This figure surpassed the LSEG consensus estimate of 106.1 trillion won but fell slightly short of the Bloomberg analyst average forecast of 108.7 trillion won. Third-quarter revenue came in at approximately 195 trillion won, up 127% year-on-year, also below market expectations.
This marks the fourth consecutive quarter in which Samsung has set a new operating profit record. The performance was driven primarily by the memory chip business, where tight supply of conventional DRAM and NAND chips, combined with robust demand for high-bandwidth memory (HBM), pushed prices higher and significantly expanded profitability in the chip division.
Analysts expect the supply-demand imbalance to persist into 2027, by which time AI-related demand will absorb an increasingly larger share of global memory capacity. Samsung will release its full earnings report, including a breakdown by business segment, on the 29th of this month.
AI Demand Surge and Supply Gap Fuel Chip Price Increases
The acceleration of AI data center construction is the core driver of this memory super-cycle. Data center developers are competing to place orders for memory chips needed for AI servers, placing continuous upward pressure on the supply side.
Constrained supply of conventional DRAM and NAND chips, combined with continuously expanding demand for high-bandwidth memory (HBM) used in large-scale AI data processing, has driven overall memory prices sharply higher.
Research firm Counterpoint Research has raised its third-quarter DRAM price increase forecast from a previous quarter-on-quarter range of 5% to 10% to 10% to 20%, citing widespread early ordering by customers and a notable strengthening of suppliers' pricing power.
Analysts broadly expect supply growth to continue lagging behind demand, and this gap may widen further in 2027, when AI-related demand will absorb an increasingly larger share of global memory capacity.
HBM Share Gains as Samsung Chases SK Hynix
In the HBM market — a core companion chip for AI accelerators — Samsung is gradually narrowing the gap with rival SK Hynix.
Analysts noted that conventional DRAM shipments are constrained by inventory levels and are expected to be roughly flat quarter-on-quarter; however, driven by strong demand for HBM4, HBM shipments are expected to rise significantly compared with the previous quarter.
Douglas Kim of Douglas Research Advisory estimates that Samsung's third-quarter HBM bit shipments grew by nearly 50% quarter-on-quarter. At the same time, Samsung and SK Hynix are pursuing a two-pronged strategy: expanding capacity while increasing strategic investments in AI-focused companies, aiming to further stimulate demand for their own products.
However, the appreciation of the Korean won poses a certain drag. Overseas sales denominated in US dollars, when converted into the local currency, translate into lower actual revenue, partially offsetting the gains from higher shipment volumes.
Analysts expect Samsung's chip division to post quarterly operating profit of up to 110 trillion won, making it the absolute pillar of overall performance, while its consumer electronics division is expected to record a loss.
Rising memory chip prices, while boosting semiconductor business profits, have also raised component costs for Samsung's smartphones and other consumer electronics, putting pressure on profit margins in the related divisions.