Headquarters of Samsung in Mountain View, California, on October 28, 2018.
Smith Assortment/gado | Archive Photographs | Getty Photographs
Samsung Electronics reported a rebound in earnings on Thursday, with working revenue greater than doubling from the earlier quarter, bolstered by robust reminiscence chip demand from synthetic intelligence servers.
Listed here are Samsung’s third-quarter outcomes in contrast with LSEG SmartEstimate, which is weighted towards forecasts from analysts who’re extra constantly correct:
- Income: 86.1 trillion Korean gained ($60.5 billion) vs. 85.93 trillion gained
- Working revenue: 12.2 trillion gained vs. 11.25 trillion gained
The South Korean expertise big’s quarterly income rose 8.85% from a 12 months earlier, whereas its first-quarter working revenue climbed 32.9% in the identical interval.
Samsung shares popped practically 4% in early buying and selling in Asia.
The earnings characterize a bounce again from the June quarter, which had been weighed down by a large hunch in Samsung’s chip enterprise. Working revenue elevated by 160% in comparison with June, whereas income elevated by 15.5% over the identical interval.
Samsung Electronics, South Korea’s largest firm by market capitalization, is a number one supplier of reminiscence chips, semiconductor foundry companies and smartphones.
The corporate’s earnings had been lifted by its chip enterprise, which noticed working revenue enhance over tenfold from the June quarter on robust demand for AI servers.
Samsung predicted that AI chip demand would proceed to develop, echoing sentiments from reminiscence rival SK Hynix, which reported earnings on Wednesday.
“We count on information middle corporations to repeatedly develop their {hardware} funding due to the continuing competitors to safe AI infrastructure,” a Samsung government mentioned throughout an earnings name.
“Subsequently, our AI-related server demand retains rising, and this demand considerably exceeds trade provide,” he added.
Chip Enterprise
Samsung’s chip enterprise reported a 19% enhance in gross sales from the June quarter, with its reminiscence enterprise setting an all-time excessive for quarterly gross sales, pushed by robust demand for synthetic intelligence.
Chip income elevated to 33.1 trillion Korean gained, up 13% from final 12 months, whereas working revenue rose 81% to 7.0 trillion Korean gained over the identical interval.
Also called its System Options division, Samsung’s chip enterprise encompasses reminiscence chips, semiconductor design and its foundry items.
Samsung mentioned the unit benefited from a positive worth surroundings, whereas quarterly revenues reached a report excessive on expanded gross sales of its high-bandwidth reminiscence (HBM) chips — a kind of reminiscence utilized in synthetic intelligence computing.
The corporate has discovered itself lagging behind reminiscence rival SK Hynix within the HBM market, after it was gradual to safe main contracts with main AI chip Nvidia. Nonetheless, in a constructive signal for the corporate, it reportedly handed Nvidia’s qualification exams for a sophisticated HBM chip final month.
A report from Counterpoint Analysis earlier this month discovered that Samsung had reclaimed the highest spot within the reminiscence market forward of SK Hynix within the third quarter after falling behind its competitor for the primary time the quarter prior.
MS Hwang, analysis director at Counterpoint Analysis, advised CNBC that Samsung’s third-quarter efficiency was a transparent results of a broader “reminiscence market increase” and rising costs for general-purpose reminiscence.
Heading into 2026, Samsung mentioned its reminiscence enterprise will concentrate on the mass manufacturing of its next-generation HBM expertise, HBM4.
Smartphones
Samsung’s cell expertise and community companies, tasked with growing and promoting smartphones, tablets, wearables and different gadgets, reported an increase in each gross sales and revenue.
The unit posted an working revenue of three.6 trillion gained within the third quarter, up about 28% from the identical interval final 12 months.
The corporate mentioned earnings had been pushed by strong flagship smartphone gross sales, together with the launch of its Galaxy Z Fold7 gadget.
Samsung forecasted that the speedy progress of the AI trade would open up new market alternatives for each its gadgets and chip companies within the present quarter.
