Samsung Electronics, the world's largest memory chip manufacturer, announced that its third-quarter operating profit will increase by 32% compared with the same period in 2024, far exceeding analysts' expectations and setting Samsung's highest single-quarter profit record in more than three years.
Reuters reported that although the supply of advanced high-bandwidth memory (HBM) to major customers has slowed down, due to strong demand for servers and artificial intelligence (AI)-related chips, the sales performance of traditional memory (Commodity Memory) was outstanding, further successfully supporting overall Samsung profits.
Samsung reported that operating profit will reach 12.1 trillion won (approximately US$8.5 billion) during the third quarter from July to September 2025. This figure is not only 32% higher than the same period in 2024, but also far exceeds the 10.1 trillion won figure expected by the market. This means that Samsung will usher in its highest single-quarter profit in more than three years. Samsung is expected to release detailed results on October 30, including a breakdown of profits across its business units.
Market analysts pointed out that the profit surprise in the third quarter stemmed from the development of the semiconductor business. Samsung's total revenue is expected to rise 8.7% annually to 86 trillion won, according to the filing. Among them, the strong market demand for servers and AI-related chips has further pushed the prices and shipments of traditional DRAM and NAND products up. Semiconductor sales overall were strong due to higher prices and shipments. Although advanced HBM chips account for an increasing share of the memory business, Samsung's supply of HBM to major customers including NVIDIA (NVIDIA) has lagged behind expectations. However, the revenue from traditional memory has effectively alleviated the impact of HBM's lagging supply under the condition of insufficient supply.
In recent years, memory manufacturers have shifted their investment focus to advanced products, limiting the output of traditional wafers. This trend is prolonging supply shortages and further driving up the price of chips needed for AI servers. According to data from research firm TrendForce, the price of certain DRAM chips, which are widely used in servers, smartphones and personal computers, surged 171.8% in the third quarter compared with the same period in 2024.
In addition, in addition to the strong performance of the memory business, Samsung's foundry department has also converged its losses. This is due to the increase in capacity utilization, which has helped reduce the pressure on fixed costs. In terms of capital markets, Samsung's stock price has risen sharply by 75% in 2025, reaching a record high. However, even Samsung’s semiconductor unit has successfully eased investor concerns through recent agreements with major technology companies such as Tesla and OpenAI. But analysts caution that there are still uncertainties.