Samsung Q3 Profit Hits $71B on Soaring DRAM Prices

According to analysts, Samsung Electronics is poised to report its highest third-quarter profit since 2022. The surge is driven primarily by rising storage chip prices fueled by strong server demand and customer inventory rebuilding efforts.

Weighted estimates from 31 analysts via LSEG SmartEstimate suggest that the world's largest memory chip maker is expected to achieve operating profits of 101 trillion Korean won (around $71.1 billion) between July and September, marking a 10% increase from the same period last year.

Analysts attribute this recovery largely to improved pricing in traditional memory chips, which helps offset a decline in HBM sales caused by delays in supplying Nvidia's latest HBM products.

Demand for storage chips, especially from hyperscale data centers and AI-related investments such as ChatGPT services, has boosted workloads on general-purpose servers, pushing traditional memory chip prices higher. TrendForce data shows that certain DRAM chips widely used in servers, smartphones, and PCs surged 171.8% year-over-year in Q3.

While Samsung's conventional memory business performed well, delays in supplying the latest 12-layer HBM3E chips to Nvidia have impacted both profit and stock performance. Competitors SK Hynix and Micron have captured more of the AI-driven demand, while Samsung's growth in China has been constrained by U.S. restrictions on advanced chip sales.

Looking ahead, analysts expect market sentiment toward Samsung's stock and chip operations—including memory and foundry segments—to improve as supply agreements with major customers such as OpenAI and Tesla take effect. Since announcing its chip supply deal with Tesla in July, Samsung's share price has risen over 43%.