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Samsung Electronics said on Thursday its operating profit rose nearly ninefold to a record high in the third quarter, driven by robust demand for AI chips, and flagged it expected the chip shortage to deepen next year.
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The world's top memory chipmaker echoed its cross-town rival SK Hynix which reported strong earnings on Wednesday and an upbeat outlook, helping to ease market concerns that AI-driven chip earnings could lose momentum.
"In 2027, the business expects AI infrastructure capital expenditure to reach a historic level as the AI ecosystem expands," it said in a statement. "Increasing AI-driven demand will far exceed the industry supply in comparison with 2026."
Samsung reported operating profit of 107.4 trillion won (US$80.04 billion) for the July-to-September period, in line with its estimate and up from 12.2 trillion won a year earlier.
Its semiconductor division posted a 15-fold jump in the third quarter from a year earlier to 106.5 trillion won, accounting for almost all of the group's total profit.
While demand for AI chips is expected to remain resilient, concerns about financing for AI infrastructure and rising competition from China have weighed on chip stocks in recent months.
Samsung said it would pay 30 trillion won in dividends for the third quarter ended in September, or 4,601 won per share, which was in line with expectations.
Shares in Samsung fell 4.6 percent in early trade, while SK Hynix rose 0.7 percent.
Reuters
