That demand will be driven by companies’ capital expenditure on artificial intelligence (AI) infrastructure, which Samsung expects to reach “a historic level” as the AI ecosystem expands and companies across the industry compete for AI leadership, according to the release.
“Despite our effort to increase production, demand growth continued to outpace this,” Jaejune Kim, executive vice president of memory at Samsung, said during a Thursday earnings call. “We plan to maintain our supply response, focused on AI application where demand momentum is strong.”
Later in the call, Kim added that in 2027, “under the trend of expanding the AI ecosystem next year, we expect investment for AI server infrastructure to accelerate as major hyperscalers increase their data center investment and AI frontier customers build out their own data centers.”
During the third quarter, Samsung’s memory business achieved record-breaking results for both quarterly revenue and operating profit as it focused on AI products and experienced robust demand amid continued capacity restraints, per the release.
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Samsung’s memory sales leapt 16% quarter over quarter and 427% year over year, according to a presentation released Thursday.
Daniel Oh, executive vice president of investor relations, said during the earnings call that the record results of the memory business drove Samsung to new highs in both revenue and operating profit. The company saw quarter-over-quarter increases of 14% in total revenue, which reached 195.3 trillion South Korean won (about $146.5 billion), and 20% in operating profit, which reached 107.4 trillion South Korean won (about $80.5 billion).
“As a result, we became the first global tech company to post a quarterly operating profit of over [100 trillion South Korean won] (about $75 billion),” Oh said.
As a result of the AI-driven demand for servers, market prices for memory were higher across all applications, according to the release.
Samsung aims to strengthen its hold on the memory market by continuing to supply products tailored to the needs of AI and by securing multi-year contracts for the products, per the release.
It was reported Oct. 8 that analysts would be scrutinizing Samsung’s third quarter results, looking for data on whether memory chip margins have peaked and whether the AI spending boom remains durable.
That report said there has been a shortage of chips for more than a year, and the shortage is expected to continue into 2027 and perhaps even through 2028.
It was reported Friday (Oct. 30) morning that the Nasdaq fell 3% after having already lost more than $1.2 trillion in market capitalization since the beginning of October due to traders’ concerns about whether companies’ AI investments will pay off.
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