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Key Points

Samsung just posted its best quarterly performance in three years with operating profit jumping nearly 32%. The tech giant's revenue hit a new record high of $61.92 billion, beating all previous quarterly marks. Strong demand for memory chips, particularly server DRAM and HBM for AI applications, drove this impressive turnaround. With Samsung securing major contracts like OpenAI's Stargate project, the company's earnings momentum looks set to continue through year-end.

Key Points: Samsung Q3 Profit Hits 3-Year High on Strong Chip Demand

  • Operating profit surged 32% year-on-year to $8.48 billion
  • Revenue reached record high of $61.92 billion in July-September
  • Profit exceeded market expectations by significant 17.4% margin
  • Strong AI demand driving server DRAM and HBM chip sales growth
2 min read

Samsung Electronics' Q3 operating profit largest in 3 years on strong chip demand

Samsung's operating profit surges 32% to $8.48 billion, marking highest quarterly profit since 2022 driven by robust semiconductor demand and AI applications.

"The third-quarter operating profit beat the market consensus by 17.4 per cent - Pulse/Maeil Business Newspaper"

Seoul, October 14

South Korean tech giant Samsung Electronics Co. saw its third-quarter operating profit rise by nearly 32 per cent on strong demand for chips, according to a report by Pulse, the English service of Maeil Business Newspaper Korea.

Citing Samsung Electronics' regulatory filing, the report on Tuesday stated that its preliminary operating profit for the third quarter stood at 12.1 trillion won (approximately USD 8.48 billion), up 31.81 per cent from the same period a year ago.

The figure was 158.55 per cent higher than 4.68 trillion won (USD 3.28 billion) in the second quarter.

The report stated that it marks Samsung's first time in five quarters to record an operating profit exceeding 10 trillion won (approximately USD 7.2 billion) since the second quarter of 2024. It is also the largest operating profit since the second quarter of 2022, when it was 14.1 trillion won (USD 10.15 billion).

"Revenue came in at 86 trillion won (USD 61.92 billion) in the July-September period, up 8.72 per cent year-on-year and 15.33 per cent quarter-on-quarter, setting a new record high. The previous quarterly record was 79.1 trillion won (approximately USD 56.95 billion), which was posted in the third quarter of 2024. The third-quarter operating profit beat the market consensus by 17.4 per cent," the report noted.

The market had projected Samsung's third-quarter operating profit at 10.3 trillion won (USD 7.42 billion), a 12.21 per cent increase year-on-year, the report said, citing data compiled by Yonhap Infomax Co. from 17 brokerage firms over the past month.

Earlier forecasts had hovered around 9.8 trillion won (approximately USD 7.06 billion), but improving memory prices and a smaller loss in non-memory chips led analysts to raise their expectations.

Looking ahead, the report stated that Samsung's earnings momentum is expected to continue into the fourth quarter, driven by semiconductor sales.

Demand for server DRAM and HBM chips remains strong due to the global spread of AI applications, and prices show no sign of softening.

Samsung Electronics has recently agreed to supply high-performance, low-power memory on a large scale to OpenAI Inc.'s 700-trillion-won (approximately USD 490 billion) Stargate project, an ultra-large AI infrastructure initiative.

- ANI

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Reader Comments

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Priya S
Impressive numbers! The OpenAI partnership is a game-changer. Hope Indian semiconductor policy can help create similar success stories here. We have the talent, just need the right ecosystem. 🤞
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Michael C
While these profits are impressive, I wonder how much of this growth is sustainable. The semiconductor industry is notoriously cyclical. Hope Samsung is investing in long-term R&D rather than just riding the current wave.
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Ananya R
As someone working in IT, this news is exciting! The AI-driven demand for chips is creating so many opportunities. Many Indian engineers are contributing to these global tech innovations. Proud moment! 💪
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Sarah B
The numbers are mind-boggling! 12.1 trillion won profit in just one quarter. This shows how critical semiconductor technology has become in the modern economy. Hope this leads to more innovation that benefits consumers worldwide.
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Vikram M
Good to see the tech sector recovering. Many Indian tech professionals work with Samsung products and technologies. This growth should translate into more opportunities in the global market. Jai Hind! 🚀

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