Samsung posts record $80bn quarterly profit on AI memory demand

Samsung Electronics made a record operating revenue of 107.4 trillion won (about $ 80bn) in the 3rd quarter, the business stated on Thursday. Need for the memory chips utilized in AI information centres kept increasing.

The figure verifies the initial outcomes Samsung released previously this month, when it stated revenue had to do with 9 times greater than a year previously.

Income likewise struck a brand-new high of 195.3 trillion won, up 14 % from the previous quarter, according to Samsung’s complete outcomes

Practically all of that revenue originated from chips. Samsung’s semiconductor organization made 106.5 trillion won on earnings of 147.1 trillion won. Its memory system set brand-new quarterly records for both sales and revenue, thanks to strong server need and greater rates.

Sales of HBM4, the most recent generation of high-bandwidth memory that sits along with AI processors, grew considerably throughout the quarter, the business stated. Its agreement chipmaking arm likewise did much better, assisted by sales of the base chips utilized in HBM.

Other parts of business had a hard time. The mobile and networks department, that makes Galaxy phones, published an operating loss of 0.6 trillion won as expenses increased, while TVs and home devices lost 0.2 trillion won. The screen system earned a profit of 1.1 trillion won.

To stay up to date with need, Samsung invested 29 trillion won on brand-new plants and devices in the quarter, more than double the previous 3 months. It anticipates to invest about 84.4 trillion won throughout the entire year.

Investors will likewise benefit. Samsung stated a quarterly dividend of 4,601 won per share, worth 30 trillion won in overall. It likewise duplicated its strategy to return 90 to 110 trillion won to investors this year.

For the 4th quarter, Samsung anticipates memory sales to keep growing as brand-new CPU and GPU platforms reach the marketplace. It likewise anticipates double-digit income development at its foundry company.

Competing SK Hynix likewise reported record earnings today and stated it anticipates the memory lack to last till 2030.