Samsung Stock: Chip Business Bounces Back With Massive Profit Jump

TLDR

• Samsung’s semiconductor division posted an 80% profit surge with 7 trillion won in operating profit, beating analyst expectations of 4.7 trillion won
• The company’s memory chip business achieved record-high quarterly revenue driven by HBM3E sales for AI applications
• Samsung plans to focus on mass production of next-generation HBM4 memory chips in 2026
• Total operating profit reached 12.2 trillion won ($8.5 billion), up 33% year-over-year
• The company allocated 47.4 trillion won ($33 billion) for capital spending in 2025 to expand production capacity

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Samsung Electronics reported third-quarter results that crushed expectations. The chip division brought in 7 trillion won in operating profit.

That number beat analyst predictions by nearly 50%. Wall Street had penciled in just 4.7 trillion won.

The Korean tech giant’s memory chip business hit an all-time revenue high. HBM3E sales powered the jump.

Samsung Electronics Co., Ltd. (005930.KS)

These advanced memory chips work with AI accelerators from companies like Nvidia. Demand for AI infrastructure continues to grow.

Samsung’s stock climbed 3.6% in Seoul trading. Investors liked what they saw in the numbers.

The company’s overall operating profit came in at 12.2 trillion won, or about $8.5 billion. That’s a 33% increase from last year’s third quarter.

Net income totaled 12.01 trillion won. Analysts had expected 9.29 trillion won.

Racing to Close the Gap

Samsung has been playing catch-up in the AI memory market. SK Hynix and Micron Technology grabbed early leads in high-bandwidth memory production.

The company stumbled with some earlier missteps. Those mistakes let competitors pull ahead in the crucial AI chip market.

Now Samsung is fighting back. The company plans to ramp up HBM4 production next year.

Capital spending for 2025 sits at 47.4 trillion won, roughly $33 billion. That money will go toward expanding and upgrading manufacturing capacity.

The semiconductor division’s operating profit margin jumped to 21.1% in the third quarter. That’s a huge leap from the 1.4% margin posted in the second quarter.

Strong Market Conditions

Memory chip prices keep climbing. Both DRAM and NAND chips are seeing price increases.

Supply can’t keep up with demand right now. Everything related to memory chips is moving fast.

Samsung echoed predictions from SK Hynix about sustained AI spending. The company expects strong demand to carry through the current quarter and into next year.

Big tech companies from OpenAI to Meta Platforms keep buying computing power. They need it for AI services and development.

The foundry business might also see improvement in the fourth quarter. More orders for smartphone processors could boost that segment.

Samsung’s preliminary results came out earlier in October. The full earnings report confirmed the upbeat numbers.

Shares rose as much as 4% after the detailed earnings announcement. The memory chip recovery is clearly gaining steam.

Samsung said it expects semiconductor demand to remain strong as companies continue investing in artificial intelligence infrastructure.

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