Samsung Electronics reported a record operating profit in Q3 2026, driven by strong demand for AI chips. However, its shares fell as investors assessed the company's outlook for the memory-chip market and its decision to delay announcing its next shareholder-return policy until January.
The South Korean technology giant posted operating profit of KRW 107.4 trillion (USD 80 billion) for the July-September quarter, compared with KRW 12.2 trillion a year earlier. Its semiconductor division generated KRW 106.5 trillion in operating profit, accounting for almost all of the group's total.
Samsung said demand for high-bandwidth memory (HBM), used in AI processors and data centers, continues to exceed supply. The company confirmed that its HBM supply for 2027 is already sold out, with major customers seeking additional quantities.
It expects AI infrastructure investment to reach historic levels next year, with demand for memory chips significantly outstripping industry supply compared with 2026. Samsung expects tight market conditions to continue through 2028, taking a more conservative view than rival SK Hynix, which has forecast a shortage extending to 2030.
Samsung plans to increase semiconductor investment after spending KRW 76.8 trillion this year, a 62% increase. The company is also pursuing long-term supply agreements to secure demand and improve production planning.
Samsung shares fell as much as 6.2% in morning trade on Thursday, despite the record earnings. Investors were looking for a stronger outlook and clearer commitments on shareholder returns following SK Hynix's upbeat earnings and capital-return announcement.
Samsung said it would finalize its next shareholder-return policy in January. Its previously announced plans included third-quarter dividends of KRW 30 trillion and total shareholder returns of between KRW 90 trillion and KRW 110 trillion for the year.
Also Read: Samsung Posts Record Q2 Revenue as AI Memory Chip Demand Drives Profit Surge
Samsung's foundry business remains loss-making, weighing on its semiconductor earnings. However, the company reported improved revenue from logic chips used in HBM products and new orders for advanced 2-nanometre chips.
It plans to begin mass production next year at its Taylor plant in Texas, including chips for Tesla. Meanwhile, rising memory-chip costs pushed Samsung's mobile business to an operating loss of KRW 800 billion, highlighting the pressure higher component prices are placing on its consumer electronics operations.
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