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AI Fuels Samsung's Soaring Profits: Tech Giant Reports Massive Growth

Published 1 week ago2 minute read
Uche Emeka
Uche Emeka
AI Fuels Samsung's Soaring Profits: Tech Giant Reports Massive Growth

Samsung Electronics has reported a dramatic rise in its operating profit for the third quarter, largely powered by the explosive growth of artificial intelligence (AI) technologies. The South Korean tech giant revealed a nearly 9% increase in revenue, reaching an all-time quarterly record of ₩86 trillion (approximately $60.4 billion) between July and September.

The impressive growth was fueled by surging demand for computer memory chips and steady performance across its smartphone division. According to the company, the widespread adoption of AI has created fresh opportunities across its semiconductor and device businesses, and Samsung expects this momentum to accelerate in the coming quarters.

Samsung’s operating profit soared to ₩12.2 trillion (around $8.6 billion), marking a 160% increase compared to the previous quarter. This surge follows a challenging period when semiconductor earnings were dragged down by inventory write-downs and export restrictions related to U.S.–China technology tensions.

Adding to the optimism, SK Hynix — another leading South Korean chipmaker — also reported a record ₩11.4 trillion ($8 billion) in operating profit for the same quarter, similarly crediting the AI boom for driving growth. The parallel success of both companies underscores how AI’s demand for high-performance chips is transforming the global semiconductor landscape.

Samsung’s semiconductor division alone generated ₩7 trillion in operating profit, buoyed by skyrocketing sales of High Bandwidth Memory (HBM) chips — crucial components that enable faster processing for AI and machine learning systems.

The company reaffirmed its leadership in advanced chip technology, announcing that its HBM3E memory is now in mass production and being supplied to all major clients. Looking ahead, Samsung has already begun shipping HBM4 samples to key customers, signaling a proactive push toward next-generation innovation in AI hardware.

Samsung’s executives remain confident that AI-driven investments — from data centers to consumer devices — will continue to sustain demand for its semiconductor products. With its dual strength in component manufacturing and finished electronics, Samsung is positioning itself at the forefront of the AI-powered global tech revolution.

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