Samsung Electronics reported a record operating profit on Thursday. The South Korean company said strong demand for its memory chips used in artificial intelligence systems drove the results.
Operating profit for the July to September quarter reached 107.4 trillion won, or about $80.5 billion. That is the highest quarterly profit in the company’s history.
Revenue for the same period also hit an all-time high. Sales rose to 195.3 trillion won, or about $146 billion.
The quarter marked Samsung’s fourth straight quarter of record profit and revenue. The company shared the figures in a regulatory filing.
Samsung is one of the world’s largest makers of memory chips. It also makes smartphones, TVs, and other consumer electronics.
Record Results Follow SK Hynix Report
Samsung’s report came one day after its domestic rival, SK Hynix, also posted a record third-quarter profit. Both companies are based in South Korea.
Together, Samsung and SK Hynix control about two-thirds of the global memory chip market. Both firms have seen strong demand for their products as companies build out AI systems.
Memory chips store and move data inside computers and servers. AI systems need large amounts of this memory to run.
Samsung Expects Demand to Keep Rising
Samsung said it expects demand for its AI-related chips to speed up through 2027. The company said this demand will outpace supply as customers race to expand their AI infrastructure.
The company plans to focus on advanced memory chips and storage products used in AI servers. These include high-bandwidth memory chips, server DRAM chips, and solid-state drives.
High-bandwidth memory, often called HBM, is a type of chip built to move data quickly. It is widely used in servers that train and run AI models.
South Korean tech companies are spending heavily on chip factories and data centers. The country is working to grow its role in AI.
In June, Samsung and SK Hynix announced plans to invest a combined 800 trillion won, or about $599 billion. The money will go toward a new chipmaking hub in the country’s southwest.
The two companies said the hub is meant to meet rising demand for AI chips.
Not everyone is sure the spending will pay off. Some analysts have questioned whether the large investments will deliver returns over time.
South Korea’s central bank has also raised concerns. It warned that the country’s trade-dependent economy is becoming too reliant on chips.
The Bank of Korea said this reliance could deepen the damage if an AI-related downturn happens.
On Thursday, Samsung said it will keep its focus on supplying memory chips and storage for AI servers. The company expects demand for these products to keep growing into 2027.
