AI Boom Powers Samsung to Record Profit Surge in 2025

Samsung reported a robust performance for the third quarter of 2025, projecting operating profit to surge by roughly 30–32% year-on-year to around 12.1 trillion won ($8.5 billion) — its strongest result in over three years. The earnings boost was largely supported by heightened global demand for conventional memory chips such as DRAM and NAND, driven by the rapid expansion of AI data centers amid limited supply across markets.

According to TrendForce, DRAM prices have risen sharply, with certain categories climbing more than 170% year-on-year, giving Samsung a notable competitive edge as rivals also face tightening supply. However, the company continues to trail behind in the high-end segment, particularly in High Bandwidth Memory (HBM) chips — a crucial component for AI and machine learning applications. Despite progress in meeting demand from key clients like Nvidia, Samsung’s delivery pace and production scale remain below expectations, while SK Hynix maintains its lead in the HBM market.

External challenges, including the ongoing U.S.–China trade tensions, export restrictions, and tariff uncertainties, continue to weigh on Samsung’s operations. Losing its DRAM market dominance to SK Hynix this year has further motivated Samsung to invest heavily in next-generation HBM technologies, with HBM4 targeted for release in 2026. Meanwhile, the company’s foundry division has shown signs of recovery, narrowing losses through better capacity utilization and cost management — a critical step toward reducing dependence on the cyclical memory business.

Analysts view the third-quarter results as more than a temporary upswing, signaling Samsung’s enduring strength in the global memory sector and its potential to solidify a leading position in the AI-driven semiconductor era. As the industry shifts from traditional memory toward advanced, high-performance chips, Samsung’s intensified R&D efforts and partnerships with major AI players could be pivotal. If the company successfully transitions from a conventional memory leader to a key contender in high-end AI chipmaking, its profitability momentum could extend well beyond the current cycle.