Shares climb to all-time high as strong AI-driven demand revives semiconductor earnings and investor confidence.
Samsung Electronics Co. posted its strongest quarterly profit in over three years, with shares soaring to a record high on surging global demand for AI memory chips. The rebound marks a major comeback for South Korea’s largest company after years of semiconductor market headwinds.
Profit Surges Beyond Expectations
In its preliminary earnings report released Tuesday (Oct 14), Samsung announced an estimated operating profit of ₩12.1 trillion (US$8.5 billion) for the September quarter — far exceeding analyst projections of ₩9.7 trillion, according to Bloomberg. Revenue rose about 9% to ₩86 trillion, reflecting robust AI-related demand. Shares in Samsung rose as much as 3.1% in Seoul, extending a 60% rally since June.
AI Memory Demand Drives Momentum
The profit surge was fueled by rising shipments of high-bandwidth memory (HBM) chips, which grew between 70% and 80% from the previous quarter. These chips power AI servers and data centers that underpin technologies like OpenAI’s language models. “Samsung’s operating profit was much bigger than anyone was expecting,” said Sanjeev Rana, head of research at CLSA Securities Korea, noting smaller-than-expected writedowns in its foundry business.
Riding the Global AI Wave
Samsung has been aggressively positioning itself to benefit from the ongoing AI boom. The company recently secured a major order from Advanced Micro Devices (AMD) and is awaiting final validation from Nvidia for its latest HBM3E chips. Both Samsung and rival SK Hynix have also signed agreements to supply memory to OpenAI’s Stargate project, a next-generation AI supercomputing initiative projected to require more than double the world’s current HBM capacity.
Investors Rally Behind Chip Recovery
Analysts say Samsung may have reclaimed its position as the top global memory maker by revenue, supported by higher DRAM and NAND prices. “AI-related investments have significantly lifted memory prices and volumes,” said MS Hwang, research director at Counterpoint. However, he warned that Samsung must sustain momentum into its upcoming HBM4 product to consolidate its comeback.
Closing the Gap With SK Hynix
Samsung’s turnaround comes after a challenging period in which SK Hynix outpaced it in developing advanced HBM chips used in AI processors. With the semiconductor division contributing up to 70% of the group’s annual profits, the rebound offers renewed optimism that Samsung can close the innovation gap with its rival.
Stronger Outlook for 2025
Chief Financial Officer Park Sooncheol previously projected “meaningful expansion” in high-end memory products during the second half of 2025. With global AI infrastructure spending accelerating, analysts expect Samsung’s earnings to continue improving through the year. The company will release detailed financial results, including divisional performance, on Oct 30.
Samsung’s latest earnings reaffirm its resurgence as a global technology powerhouse. The surge in AI chip demand not only cements its place in the semiconductor race but also signals Asia’s growing role in driving the world’s digital transformation. For regional investors in Singapore and Indonesia, Samsung’s rally underscores the expanding ripple effects of AI innovation across Asia’s high-tech economies.
Sources: The Edge Singapore (2025) , NDTV Profit (2025)
Keywords: Samsung Profit, AI Chips, Memory Market, Semiconductor Recovery, SK Hynix
