Samsung Electronics has set an unprecedented record by posting more than 100 trillion won in quarterly operating profit, powered by an artificial intelligence-driven boom in memory semiconductors.
The South Korean technology giant said Wednesday that it expects consolidated sales of 195 trillion won and operating profit of 107.4 trillion won for the third quarter of 2026. Sales surged 126.6% from a year earlier, while operating profit jumped 782.5%, with both figures marking quarterly records.
Operating profit also exceeded market expectations of around 106 trillion won and surpassed the previous quarterly record of 89.49 trillion won set in the second quarter. Samsung has now broken its quarterly operating profit record for four consecutive quarters since the fourth quarter of last year.
The scale of the latest earnings is unprecedented among global technology companies. Samsung's quarterly operating profit is significantly higher than that of Nvidia, the world's largest company by market capitalization, which reported operating profit equivalent to roughly 85 trillion won in its most recent quarter.
The extraordinary performance was driven primarily by Samsung's semiconductor business, which has benefited from a sharp increase in demand for memory chips used in AI data centers.
Although Samsung has yet to disclose detailed results by business division, analysts estimate that the Device Solutions division generated more than 100 trillion won in operating profit during the quarter. The memory business is believed to have accounted for the overwhelming majority of those earnings.
The memory market has entered a powerful upswing as global technology companies rapidly expand AI infrastructure. High-bandwidth memory, or HBM, has emerged as a critical component for AI accelerators, while demand for conventional DRAM has also strengthened as data-center operators increase server capacity.
At the same time, memory manufacturers have been shifting production capacity toward higher-margin HBM products. This has tightened supplies of conventional DRAM and contributed to broad-based price increases across the memory market.
Industry data indicates that conventional DRAM contract prices rose by double digits during the third quarter. Although the pace of increase slowed from the previous quarter, prices continued to rise as supply remained constrained.
Samsung has benefited from both higher shipment volumes and rising chip prices. The combination has sharply improved the profitability of its memory operations, with the business believed to have achieved margins rarely seen in the semiconductor industry.
HBM4 also became an increasingly important contributor to Samsung's performance during the quarter. The company has begun ramping up production of its next-generation HBM as demand from AI chipmakers accelerates.
The launch of Nvidia's next-generation AI platform has further increased demand for HBM4. Samsung is supplying HBM4 for the new generation of AI systems, giving the company an opportunity to strengthen its position in the rapidly expanding AI memory market.
HBM4 could also have implications beyond Samsung's memory business. The company is using its own advanced foundry technology to manufacture base dies for HBM4, creating potential synergies between its memory and contract-chip manufacturing operations.
As HBM production expands, demand for related logic dies, advanced packaging and foundry services could increase as well. That could provide a boost to Samsung's foundry business, which has struggled in recent years to match the profitability and growth of its memory operations.
The semiconductor boom, however, has created a mixed picture across Samsung's broader business portfolio.
Samsung's Device Experience division, which includes smartphones, televisions and home appliances, has faced rising component costs as memory prices have surged. Higher memory prices benefit the semiconductor division but increase production costs for businesses that use memory chips in finished products.
The pressure has been particularly significant in smartphones and consumer electronics, where fierce competition makes it difficult for manufacturers to pass higher component costs directly on to customers.
As a result, analysts expect the DX division to have remained under significant pressure during the third quarter, following its first quarterly operating loss earlier this year.
The contrast highlights the unusual nature of Samsung's latest earnings. The company did not achieve its record profit through uniform growth across all businesses. Rather, the semiconductor division generated an extraordinary amount of profit that more than offset weakness elsewhere.
The outlook for Samsung's semiconductor business remains strong, at least for the near term.
AI data-center investment continues to accelerate globally, while semiconductor manufacturers face limitations in expanding production capacity quickly. Building new fabrication facilities requires substantial capital and years of preparation, meaning supply is unlikely to catch up with demand immediately.
This imbalance has encouraged major customers to secure memory supplies through long-term agreements. Technology companies are increasingly seeking guaranteed access to memory chips in anticipation of continued shortages, strengthening the bargaining position of major suppliers.
The trend could help extend the current memory upcycle well into next year.
Samsung's accumulated earnings have also put the company on track for another major annual milestone. With operating profit already exceeding 250 trillion won through the first three quarters, the company could potentially surpass 300 trillion won in annual operating profit if the current semiconductor boom continues.
Still, maintaining such extraordinary profitability will not be easy.
The memory industry remains cyclical, and an eventual increase in production capacity could put downward pressure on chip prices. Samsung must also maintain its technological lead in HBM while competing aggressively with other major memory manufacturers for AI customers.
The company faces challenges beyond memory as well. Improving the profitability of its foundry and system semiconductor businesses remains a key priority, while its smartphone, television and home appliance operations need to recover margins as component costs rise.
For now, however, Samsung's third-quarter results mark a historic moment for the company and the global technology industry.
A quarterly operating profit exceeding 100 trillion won demonstrates how dramatically the economics of the semiconductor industry have changed in the age of AI.
The question for investors is no longer whether Samsung can reach the 100-trillion-won quarterly profit threshold. It is whether the company can sustain that level of profitability as AI infrastructure investment continues to reshape the global semiconductor market.
