Samsung Stock: Chip Business Crushes Expectations With 80% Profit Jump

TLDR

• Samsung’s chip unit posted 7 trillion won operating profit in Q3, an 80% jump that exceeded analyst forecasts by 50%
• Memory chip revenue hit record highs on HBM3E sales as AI infrastructure demand accelerates
• The company is investing $33 billion in 2025 capital spending and preparing HBM4 production
• Overall operating profit reached $8.5 billion, up 33% from last year
• Shares jumped 4% as memory chip prices continue rising with supply lagging demand

Samsung Electronics delivered a knockout third-quarter performance. The semiconductor division posted 7 trillion won in operating profit.

Analysts expected 4.7 trillion won. Samsung beat that by nearly 50%.

The memory chip business drove the gains. HBM3E sales hit record levels for the quarter.

These high-bandwidth memory chips pair with AI accelerators. Companies building AI infrastructure can’t get enough of them.

Samsung stock rose 3.6% in Seoul. The market rewarded the strong results.

Total operating profit came in at 12.2 trillion won, about $8.5 billion. That’s a 33% climb from the same period last year.

Net income reached 12.01 trillion won. Wall Street projected 9.29 trillion won.

Catching Up in the AI Race

Samsung lost ground to SK Hynix and Micron in advanced memory. The company made some strategic errors that let rivals pull ahead.

Now it’s fighting back. HBM4 production will ramp up in 2026.

The company earmarked 47.4 trillion won for 2025 capital spending. That’s roughly $33 billion going into factory upgrades and capacity expansion.

The chip division’s operating margin tells the story. It jumped from 1.4% in Q2 to 21.1% in Q3.

“Everything that’s related to memory is in very strong demand and supply is lagging,” said Sanjeev Rana from CLSA Securities Korea. He expects the pricing trend to last several quarters.

Market Dynamics Favor Samsung

DRAM and NAND chip prices keep climbing. Demand outstrips what manufacturers can produce right now.

OpenAI, Meta Platforms, and other tech giants keep buying computing power. They need it for AI development and services.

Samsung expects this momentum to continue. The company predicts strong demand through Q4 and into next year.

SK Hynix made similar forecasts. The AI spending wave shows no signs of slowing down.

Looking Ahead

The foundry business could strengthen in Q4. More smartphone processor orders might boost that segment.

Samsung released preliminary results earlier in October. The detailed earnings report confirmed the positive numbers.

Shares climbed as much as 4% after the full announcement. Investors see the memory chip recovery gaining traction.

The semiconductor division achieved record quarterly revenue. HBM3E sales powered that milestone.

Memory chip pricing should stay elevated. Supply constraints aren’t going away anytime soon.

Samsung continues to invest heavily in production capacity. The $33 billion capital budget reflects confidence in sustained demand.

The company said semiconductor demand will remain strong as artificial intelligence investment continues across the industry.

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