Samsung Q3 2025 Profit Skyrockets 158% on AI Chip Demand

Samsung Electronics has announced a massive surge in its third-quarter earnings. The South Korean tech giant expects an operating profit of 12.1 trillion won, approximately $8.46 billion. This figure represents a staggering 158% jump from the previous quarter. The results far exceeded market expectations.

This performance marks the company’s highest Q3 profit in three years. According to Reuters, the explosive growth is fueled by the global artificial intelligence boom. Rising memory chip prices and strong foldable phone sales also contributed significantly.

AI and High-Bandwidth Memory Chips Drive Record Performance

Samsung’s semiconductor division was the primary profit driver. The unit posted an operating profit of around 6 trillion won, or $4.19 billion. This means nearly half of the company’s total profit came from its chip business. The demand for high-bandwidth memory, or HBM, is a key factor.

HBM chips are crucial for advanced AI applications and data centers. They work alongside processors like those made by Nvidia. Samsung is now poised to become a major supplier of its latest HBM chips to Nvidia. This partnership is critical for its future growth.

Strategic Shifts and Broader Market Impact

This turnaround signals a strategic victory for Samsung. After initially lagging in the AI hardware race, the company is now catching up fast. Its foundry business also showed improvement, adding to the positive results. The broader tech industry is watching this recovery closely.

Strong consumer demand for the Galaxy Z Flip 7 and Z Fold 7 also provided a boost. The successful smartphone lineup helped diversify the company’s revenue streams. Analysts now predict even stronger performance if the Nvidia supply deal is finalized. Samsung’s renewed focus on high-performance chips is paying off.

The projected $8.5 billion profit for Q3 2025 firmly places Samsung back in the AI chip race. With the anticipated Nvidia partnership, the company’s financial resurgence appears to be just beginning.

Thought you’d like to know

Q1: How much did Samsung’s profit grow in Q3 2025?

Samsung’s operating profit surged by 158% compared to the previous quarter. Year-over-year, the profit grew by nearly 32%. This is its highest third-quarter profit in three years.

Q2: What are HBM chips and why are they important?

High-Bandwidth Memory chips are specialized components for AI data centers. They allow for much faster data processing than standard memory. This makes them essential for training and running complex AI models.

Q3: What is the significance of the potential Nvidia deal?

Supplying HBM to Nvidia would cement Samsung’s role in the AI supply chain. Nvidia is the dominant player in AI processors. This deal could double Samsung’s related revenue in the coming years.

Q4: Did smartphone sales contribute to the profit?

Yes, strong global sales of the new Galaxy Z Flip 7 and Z Fold 7 contributed to the results. The positive consumer response to these foldable models provided a significant revenue boost alongside the chip business.

Q5: Why is this profit report considered a turnaround?

Samsung had previously missed the initial wave of the AI boom. This quarter’s massive profit, driven by AI chips, shows a successful strategic pivot. It demonstrates the company is now competitively positioned in the high-demand AI market.

Trusted Sources

Reuters