Samsung Profit Surges Nearly Ninefold On AI Chip Demand
SEOUL, Oct 29 (NNN-dpa) -- Samsung Electronics has reported a record operating profit on sustained strong demand for semiconductors, with earnings at the South Korean electronics giant rising nearly ninefold year-on-year to 107.4 trillion won (US$80.5 billion) in the third quarter, German Press Agency (dpa) reported, citing the company on Thursday.
Revenue totalled around 195.3 trillion won. The company also announced plans to pay out a total of around 30 trillion won in dividends.
Despite the record results, Samsung fell short of investors' high expectations. Its shares initially dropped more than four per cent after the results were published.
The world's largest memory chip maker continues to benefit significantly from the global expansion of artificial intelligence (AI) infrastructure. Strong demand for advanced memory chips is driving up prices and keeping supply tight.
Samsung expects demand for semiconductors to continue significantly outstripping supply next year. Rival SK Hynix on Wednesday also reported strong financial results and gave an upbeat outlook.
The boom in the memory chip industry is largely driven by enthusiasm for AI. The rapid expansion of AI data centres requires vast amounts of IT hardware, including memory chips. High-bandwidth memory, in particular, is in strong demand. Memory chip prices have also risen sharply across the wider market.
--NNN-dpa
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