Samsung Electronics reported third-quarter operating profit of 12.1 trillion won ($8.5 billion), a 32% jump from a year earlier that marks its strongest quarterly performance since mid-2022. The result beat the 10.1 trillion won average estimate, with revenue climbing 9% to 86 trillion won.
The earnings beat came primarily from conventional memory chips rather than cutting-edge offerings, as tight supply conditions drove DRAM prices up 172% year-over-year. Strong demand for standard memory used in data center servers helped offset weaker-than-expected sales of advanced high-bandwidth memory chips, where Samsung has lagged rivals in securing supply deals with Nvidia.
The semiconductor division is estimated to have generated over 5 trillion won in operating profit for the quarter, more than ten times the previous quarter’s figure. Sales of the latest Galaxy Z Fold7 and Z Flip7 foldable smartphones also contributed to the improved performance.
While Samsung has recently secured deals for OpenAI’s Stargate project and a $16.5 billion Tesla foundry contract, questions remain about its ability to catch SK Hynix and Micron in the high-end AI memory market. The company plans to release detailed divisional results on October 30.
