AI chip shortage could worsen in 2027: What Samsung’s record $80 billion quarterly profit tells us
Samsung Electronics reported a record operating profit of 107.44 trillion won ($80.04 billion) in the third quarter, as robust demand for artificial intelligence (AI) chips drove earnings at the world's top memory chipmaker. The company, however, warned that the chip shortage could deepen next year as AI-driven demand outpaces industry supply.
Samsung's third-quarter operating profit rose 783.11% year-on-year from 12.2 trillion won. Revenue rose 126.88% from a year earlier and 13.85% from the previous quarter to 195.25 trillion won.
The results were broadly in line with analysts' expectations. Samsung's revenue compared with LSEG SmartEstimates, weighted towards forecasts from more consistently accurate analysts, was 195.25 trillion won against expectations of 195.79 trillion won. Operating profit was 107.44 trillion won, compared with 107.66 trillion won expected.
Samsung's semiconductor division posted a 15-fold jump in third-quarter profit from a year earlier to 106.5 trillion won, accounting for almost all of the group's total profit.
Revenue: 195.25 trillion won vs. 195.79 trillion won expected
Operating profit: 107.44 trillion won vs. 107.66 trillion won expected
Samsung said it expected demand for memory chips to outpace industry supply by a wider margin in 2027 as investment in AI infrastructure expands.
"In 2027, the (memory) business expects AI infrastructure capital expenditure to reach a historic level as the AI ecosystem expands," Samsung said in a statement, according to Reuters.
" Increasing AI-driven demand will far exceed the industry supply in comparison with 2026," the company said.
Samsung's outlook echoed that of South Korean rival SK Hynix, which reported strong earnings on Wednesday and gave an upbeat forecast, helping ease market concerns that AI-driven chip earnings could lose momentum.
However, concerns about financing for AI infrastructure and rising competition from China have weighed on chip stocks in recent months, Reuters reported.
Shares in Samsung fell 4.6% in early trade, while SK Hynix rose 0.7%.
During the third quarter, Samsung Electronics and five of its affiliates announced a combined $1 billion investment in KKR-backed Helix Digital Infrastructure. Samsung Electronics will invest $500 million, with the remaining amount coming from its affiliates.
Samsung has also announced a partnership with French AI startup Mistral AI to use AI technologies in its semiconductor operations, including chip design and manufacturing. The company also led Mistral’s Series D funding round, CNBC reported.
Samsung said it would pay 30 trillion won in dividends for the third quarter ended in September, or 4,601 won per share, in line with expectations, Reuters reported.
(With inputs from Reuters and CNBC)
Sanchari Ghosh is an Assistant Editor at Mint with over 12 years of experience in journalism, specialising in personal finance, DLT & DeFi, geopolitics and foreign policy, with a particular emphasis on how these areas intersect. <br> She writes extensively about how money works in everyday life—helping readers navigate personal finance decisions. <br> As AI reshapes investing behaviour, capital is increasingly flowing into decentralized ecosystems, redefining how assets are managed, traded, and valued. She focuses on explaining how money flows within frameworks like Distributed Ledger Technology (DLT), DeFi protocols, and crypto markets—while also exploring what the future of money could look like in a trustless, programmable financial world. <br> She also focuses on immigration-related issues, simplifying complex topics around visas, passports, overseas financial planning, and the many practical challenges Indians face while moving or living abroad. <br> Alongside personal finance, Sanchari has a strong understanding of international politics, contemporary and historical conflicts, and global state decisions. She closely tracks how geopolitical developments influence economies, markets, and individual financial choices, bringing together finance and global affairs in her reporting. <br> She began her career as a desk editor, which gave her a strong foundation in news writing. Over time, her interest naturally shifted toward personal finance. Before joining Mint in 2020, she worked DNA, The Times of India, Outlook Money, BloombergQuint, and ETMoney. At Mint, she got an opportunity to expand her coverage to include immigration and geopolitical developments while continuing to closely follow personal finance trends and market movements.As a journalist, she is committed to accuracy, intellectual rigour, and fairness. <br> She is an English Major and her work took her across cities including Delhi, Mumbai, and Pune. Living independently from an early age gave her firsthand experience in managing life and money on her own. This practical exposure sparked her strong interest in personal finance. <br> Outside the newsroom, Sanchari is a sports enthusiast who regularly plays lawn tennis and squash. In her younger years, she was also a national-level badminton player.
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