South Korean tech giant Samsung Electronics announced today that its third-quarter operating profit surged by more than 780% year-on-year, driven by robust demand for artificial intelligence (AI) semiconductors.
According to Agence France-Presse (AFP), Samsung Electronics—the world’s largest manufacturer of memory chips—is benefiting from a massive scramble by major data centers to secure advanced chips required to power AI, fueling intense demand for such components.
In a regulatory filing, Samsung Electronics reported an operating profit of 107.4 trillion won (approximately NT$2.6 trillion) for the period from July to September, marking a 783.1% increase compared to the same period last year.
Samsung Electronics noted that this is the first time a company in the technology sector has achieved a quarterly operating profit exceeding 100 trillion won. The company’s net profit jumped 514.6% year-on-year to 75.1 trillion won, while total revenue reached 195.2 trillion won.
However, this performance still fell short of market expectations. A Bloomberg survey of economists indicated that the market had projected a quarterly operating profit of 108.5 trillion won and a net profit of 89.4 trillion won for Samsung Electronics.
Despite concerns that valuations in the AI sector may be inflated, the global race to build AI data centers is providing strong growth momentum for Samsung and its competitors.
In a statement, Samsung noted that, despite production capacity constraints, its memory business achieved a new quarterly performance record by adjusting its product mix and focusing on AI-related products.