Samsung returns to the top

Samsung announced a sharp increase in third-quarter profits. Photo: Reuters .

Samsung reported a profit recovery that more than doubled from the previous quarter, thanks to strong demand for memory chips for artificial intelligence servers. The company reported third-quarter revenue of 86.1 trillion won and operating profit of 12.2 trillion won, nearly 1 trillion higher than forecasts from LSEG SmartEstimate.

The results showed a strong recovery from the June quarter, when Samsung’s chip division was hit by a major downturn. Operating profit jumped 160%, while revenue rose 15.5% in the same period.

The figure was boosted by a more than 10-fold increase in operating profit from the chip division compared to the June quarter, thanks to strong demand from AI servers. Samsung expects AI chip demand to continue to grow, echoing a similar view from rival SK Hynix in the memory chip sector.

“As the competition for an edge in AI infrastructure continues, data center companies will continue to expand their hardware investments. Demand for AI-related servers has already outstripped the industry’s supply,” a Samsung executive said during an earnings call.

Samsung's chip division (also known as the Device Solutions division) includes memory chips, semiconductor design, and contract chip manufacturing units. Samsung said the division benefited from a favorable pricing environment, while quarterly revenue hit a record high thanks to strong sales of high-bandwidth memory (HBM) chips, used in AI processing.

The company had previously lagged behind rival SK Hynix in the HBM market due to delays in signing major contracts with Nvidia. However, Samsung is said to have recently passed the chipmaker’s quality tests for its most advanced HBM line.

Samsung regained the number one spot in the memory chip market in the third quarter, after being overtaken by SK Hynix in the previous quarter, according to a report from Counterpoint Research released earlier this month. Looking ahead to 2026, the company said its memory chip division will focus on mass producing next-generation HBM technology.

Meanwhile, Samsung’s mobile and network experience division, which develops and sells smartphones, tablets, wearables and other devices, saw both revenue and profit increase. The division posted an operating profit of 3.6 trillion won in the third quarter, up about 28 percent from the same period last year.

The results were driven by strong sales of premium smartphones, including the launch of the Galaxy Z Fold7 series. Samsung also forecast that the rapid growth of the AI industry will open up new market opportunities for both its device and chip businesses in the current quarter.

Source: https://znews.vn/samsung-tro-lai-vi-tri-dan-dau-post1598549.html