Samsung Electronics Q3 profit hits another record but still slightly misses expectations, AI memory boom becomes main engine.

Samsung Electronics said Thursday in preliminary data that its third-quarter operating profit for the period ending in September was about 107.4 trillion won (about $80.1 billion), more than eight times the year-earlier figure and another record, driven mainly by demand for high-bandwidth memory (HBM). Still, the result was about 1% below the analysts' average estimate of 108.7 trillion won. Quarterly revenue was 195 trillion won, up nearly 127% from a year earlier and also below expectations. As a South Korean conglomerate spanning chips and smartphones, Samsung is facing pressure from rising component prices that is squeezing consumer-electronics margins. "These are solid numbers. Samsung has a lot of cards left to play in HBM next year, because the full effect has not yet fully shown up," said Neil Shah, vice president at Counterpoint Research. The record profit and elevated expectations underscore how the AI boom has tilted the economics of the memory-chip industry sharply in favor of Samsung, SK Hynix and Micron Technology. Data-center developers are racing to lock up memory chips for AI servers. Counterpoint Research raised its forecast for third-quarter DRAM price increases to 10%-20% from 5%-10%, saying customers are placing orders early and suppliers' pricing power is strengthening. The boom has already transformed Samsung's semiconductor business. A few years ago, the business was posting losses because of weak demand; now, AI infrastructure buildout is absorbing large amounts of advanced DRAM, and Samsung is narrowing its gap with SK Hynix in HBM. HBM is a key chip used alongside AI accelerators such as Nvidia's. South Korean trade data also show semiconductor exports more than tripled year on year in September. Analysts on average expect Samsung's chip division to post an operating profit of 110 trillion won, while the consumer-electronics division is expected to record a loss. Suwon-based Samsung will release full earnings results on Oct. 29. Although the company already reported record results in July, its share price remains about 25% below its June peak, showing investors still have doubts about a chip industry caught in a boom-and-bust cycle. Both Samsung and SK Hynix are currently expanding capacity and increasing investment in AI-related companies to drive demand for their products.