Samsung posts record profit on AI chip demand, but shares slide on results

what happened

According to Update, Samsung Electronics reported its fourth straight quarter of record earnings, as its core chip business keeps benefiting from demand for artificial intelligence infrastructure. Quarterly operating profit passed 100 trillion won, or $74.52 billion, making Samsung the first major global tech company to clear that level.

The company also said memory supply will stay tight through 2028, and next year's output is already fully booked. Customers are signing multiyear deals, and some existing buyers want to renew. Net profit for the July-September period rose more than sixfold to 75.136 trillion won, but analysts had expected 86.13 trillion won. Shares dropped more than 5% in early afternoon trading.

Samsung reaffirmed plans to return 90 trillion to 110 trillion won to shareholders in 2026. Capital spending this year is set at 84.4 trillion won, with 76.8 trillion won going to the chip division.

why it matters

For markets, high memory prices and long-term contracts support chipmakers' profits. However, the lack of detail on payouts and high investor expectations weighed on the stock, so the market reaction was mixed.

market impact

Memory chipmakers: tight supply and high prices support earnings; Samsung shares: high expectations and unclear payouts weigh

• ▲Memory chip prices pressure up — tight supply and multiyear contracts keep prices elevated
• ↔Samsung Electronics shares mixed — strong profit offset by disappointment versus forecasts and no payout details

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