NewKerala.com

Samsung Smashes Profit Record as AI Chip Boom Fuels 208% Surge

Samsung Electronics has projected a record quarterly operating profit of 20 trillion won ($13.8 billion) for Q4 2025, marking a staggering 208% increase year-on-year. This historic performance is primarily fueled by its memory chip division, where prices surged over 30% due to tightened supply and soaring demand for high-bandwidth memory used in AI. While the mobile and display businesses also contributed profits, the TV and appliance division faced an operating loss. The company's shares reached a 52-week high following the optimistic guidance, with final results due on January 29.

Key Points: Samsung Forecasts Record Profit on Surging Memory Chip Prices

  • Record $13.8B quarterly profit
  • 208% surge year-on-year
  • AI memory chip demand drives prices
  • Memory division contributes ~$11.7B
  • Shares hit 52-week high
2 min read

Samsung forecasts record quarterly profit as memory chip prices surge

Samsung Electronics projects a record $13.8B quarterly profit, driven by a 208% surge fueled by high AI memory chip demand and soaring prices.

"Samsung estimated an operating profit of 20 trillion won... a 208.17 per cent increase from the previous year. - The Korea Herald"

Seoul, January 8

Samsung Electronics smashed its quarterly profit record as a global memory chip supercycle drove earnings to unprecedented levels during the final months of 2025. The technology giant projected its highest-ever quarterly operating profit on Thursday, buoyed by rising semiconductor prices and a shift in production capacity toward advanced components.

In its earnings guidance for the October-December period, according to a report by The Korea Herald, Samsung estimated an operating profit of 20 trillion won (USD 13.8 billion). This figure represents a 208.17 per cent increase from the previous year and surpasses the previous record of 17.5 trillion won (USD 12.04 billion) set in 2018.

Revenue for the quarter is expected to rise 22.71 per cent year-on-year to 93 trillion won (USD 64.02 billion). These figures exceed market expectations and mark the largest quarterly operating profit ever posted by a Korean company.

The record performance stems largely from the company's memory semiconductor division. Market estimates suggest the device solutions division, which oversees chips, contributed between 16 trillion won (USD 11.01 billion) and 17 trillion won (USD 11.7 billion) to the quarterly operating profit.

This surge follows a rapid rise in global memory prices as manufacturers shifted focus toward high-bandwidth memory for artificial intelligence. Supplies of general-purpose memory tightened as a result, pushing average selling prices for DRAM chips up by more than 30 per cent quarter-on-quarter.

While the chip business led growth, the mobile experience division added approximately 2 trillion won (USD 1.38 billion) in operating profit. The display business and the automotive electronics unit, Harman, contributed an estimated 1 trillion won (USD 688 million) and 500 billion won (USD 344 million), respectively. However, the television and home appliance division faced challenges, projecting an operating loss of approximately 100 billion won (USD 68.8 million) due to weak consumer demand and high competition.

As per the report, Samsung currently maintains the top position in the global NAND flash market and is narrowing the gap with rivals in the DRAM sector. The company also overhauled its high-bandwidth memory business, with expectations to increase its market share to 30 per cent this year.

"Reflecting optimism surrounding the chip upcycle, Samsung shares hit a fresh 52-week high of 144,500 won during intraday trading. Shares had later eased to close at 138,000 won," the report said.

Samsung plans to release its finalized annual earnings and detailed divisional results on January 29.

- ANI

Share this article:

Reader Comments

P
Priya S
Wow, 208% increase! 🤯 The AI-driven demand for high-bandwidth memory is really reshaping the industry. It shows how crucial advanced chipmaking is. Hope Indian companies are watching and learning – we need our own semiconductor champions.
R
Rohit P
Great for Samsung shareholders, but I wonder how this "supercycle" and price surge will affect the final cost for consumers in India. Our smartphones, laptops, and electronics might get more expensive if component costs keep rising.
S
Sarah B
The TV and appliance division losing money is interesting. In the Indian market, competition from brands like LG and Chinese players is incredibly fierce, especially during festival sales. Samsung's strength is clearly in B2B tech now, not just consumer electronics.
V
Vikram M
This is the result of strategic focus and massive R&D investment. Korea has built an ecosystem for this. India's semiconductor mission is a step in the right direction, but we have decades of catching up to do. We need long-term policy stability.
M
Michael C
A respectful criticism: While the profits are record-breaking, I hope some of this wealth is being reinvested into making the supply chain more resilient and sustainable. The chip industry has a significant environmental footprint that needs addressing.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Minimum 50 characters 0/50