Prime Highlights:

• Samsung Electronics reported its highest-ever quarterly operating profit, driven by surging demand for AI-related memory chips, particularly high-bandwidth memory (HBM).
• Strong AI and server demand tightened global memory supply, lifting chip prices and pushing both revenue and profit to record levels despite weakness in smartphones.

Key Facts:

• Fourth-quarter operating profit reached 20.1 trillion Korean won, more than triple year-on-year and slightly above analyst expectations.
• Revenue rose about 24% from a year earlier to a record 93.8 trillion won, matching the company’s prior guidance.

Background

Samsung Electronics reported a sharp rise in fourth-quarter profit, beating analyst estimates as strong demand for artificial intelligence chips tightened global memory supply. The South Korean technology giant said profits more than tripled from a year earlier, marking its highest quarterly operating profit on record.

For the quarter, Samsung posted an operating profit of 20.1 trillion Korean won, slightly above market expectations. Revenue rose about 24% year on year to 93.8 trillion won, also setting a new record. The results exceeded analysts’ forecasts and matched the company’s earlier guidance.

Samsung’s shares rose at the market open but later slipped in morning trade, reflecting mixed investor reaction despite the strong earnings.

The company said its memory business played a key role in driving results. Rising chip prices and strong sales of high-bandwidth memory helped push both revenue and profit to all-time highs. HBM is widely used in AI servers and data centers, where demand has surged over the past year.

Samsung has increased its focus on HBM production under its Device Solutions division. Demand from AI chipmakers, including firms supplying data center hardware, continues to outstrip supply. As memory makers shift capacity toward these high-value products, shortages have spread across the broader chip market, lifting prices for PC and mobile memory as well.

Looking ahead, Samsung said it expects AI and server demand to remain strong in the first quarter of 2026. The company will focus on high-performance products to protect margins and support long-term growth.

However, Samsung’s smartphone business posted weaker results. Profit in the mobile division fell because demand weakened and competition increased. The company said it plans to boost sales by expanding AI features in its upcoming Galaxy S26 series while managing costs and supply risks.