Samsung Electronics said on Thursday, 29 October, that its operating profit rose nearly ninefold to a record high in the third quarter, driven by robust demand for chips used in artificial intelligence. The world's largest memory chipmaker reported operating profit of 107.4 trillion won (about $80 billion) for the quarter ended 30 September, up from 12.2 trillion won a year earlier and in line with its earlier estimate. Revenue reached 195.3 trillion won (about $145.6 billion), up 127 percent from a year earlier. The company also announced total cash dividends for the quarter of 30 trillion won, or 4,601 won per share.

Why investors still sold the shares

Despite the record numbers, Samsung's stock fell more than 6 percent to about 226,000 won in late-morning trading in Seoul on Thursday, as investors remained wary about whether AI spending can sustain its current pace. Echoing rival SK Hynix, which reported strong earnings and an upbeat outlook on Wednesday, Samsung said the chip supply shortage would deepen next year — a signal that demand is outrunning supply, but also a reminder of how much of the boom rests on a single theme.

What comes next

SK Hynix's results had helped ease market concerns that AI-driven chip earnings could lose momentum, lifting shares of both companies earlier in the week. Samsung's own numbers then confirmed the strength of the cycle, without removing the doubt about its durability. Samsung said it would announce its next shareholder return policy, along with detailed plans for the rest of 2026, after a board meeting scheduled for January 2027.

Sources: Reuters (syndicated), Reuters Breakingviews.