Samsung, the world's largest memory chipmaker, expects the demand for memory chips driven by artificial intelligence (AI) applications to far exceed supply in 2027. This forecast comes after the company reported record quarterly revenue and operating profit for July to September 2026, highlighting the growing importance of AI in the technology sector.
- Samsung reported record quarterly revenue of 195.3 trillion won ($136 billion) for July-September 2026.
- Operating profit reached 107.4 trillion won, the first time a tech company exceeded 100 trillion won in a quarter.
- Strong demand for memory chips is driven by AI infrastructure and server needs.
- Samsung plans to increase sales of high-bandwidth memory, server DRAM, and solid-state drives.
- Investors are uncertain about the timing and scale of shareholder payouts related to AI profits.
What were Samsung's financial results for the third quarter of 2026?
Samsung Electronics reported record revenue of 195.3 trillion won (approximately $136 billion) for the third quarter of 2026, marking a 14% increase from the previous quarter. The company's operating profit reached 107.4 trillion won, making it the first technology company to surpass 100 trillion won in quarterly operating profit.
These results were mainly driven by Samsung's semiconductor business, which posted an operating profit of 106.5 trillion won on revenue of 147.1 trillion won. The strong performance was supported by rising memory prices and increased demand for servers.
Why is AI driving memory chip demand?
Artificial intelligence applications require significant computing power, which depends heavily on memory chips such as high-bandwidth memory (HBM), server DRAM, and solid-state drives (SSDs). As AI infrastructure investment grows, the need for these memory components increases rapidly.
Samsung expects AI infrastructure investment to reach record levels in 2027, with demand for memory chips growing faster than in 2026. This growth is due to the expanding AI ecosystem and the increasing use of AI technologies in various industries.
How is Samsung planning to meet the rising demand?
To capitalize on the growing AI-driven demand, Samsung plans to increase sales of high-bandwidth memory, server DRAM, and SSDs. The company also aims to secure multi-year contracts and develop new products that align with the specific needs of AI customers.
Despite these plans, Samsung acknowledges capacity constraints in memory chip production, which may limit supply in the near term.
What is the outlook for shareholder returns and investor reactions?
Samsung expects total shareholder returns for 2026 to be between 90 trillion won and 110 trillion won. Of this, 35 trillion won has already been planned or completed through dividends and share repurchases.
The remaining returns will include a substantial share repurchase and cancellation program, along with cash dividends. However, the company has not yet finalized the details, with a board meeting scheduled for late January 2027 to decide on the shareholder return policy and payout amounts.
This uncertainty led to a drop in Samsung Electronics' shares by more than 6% following the announcement, as investors were disappointed by the lack of clear information on how the AI-driven profits will be shared.
What dividends did Samsung declare for the third quarter?
Samsung declared a third-quarter cash dividend of 4,601 won per common share and 4,601 won per preferred share, totaling 30 trillion won in payouts.
What are Samsung's capital expenditure plans?
For the full year 2026, Samsung expects capital expenditure of about 84.4 trillion won, with 76.8 trillion won allocated to its Device Solutions division, which includes semiconductor businesses.
Looking ahead to 2027, Samsung anticipates a historic level of capital expenditure on AI infrastructure as the AI ecosystem continues to expand.
Frequently Asked Questions
Q: Why is Samsung's memory chip demand expected to exceed supply in 2027?
A: The rapid growth of AI applications requires more memory chips, and Samsung expects AI infrastructure investment to reach record levels, causing demand to outpace supply.
Q: How did Samsung perform financially in the third quarter of 2026?
A: Samsung reported record revenue of 195.3 trillion won and operating profit of 107.4 trillion won, driven by its semiconductor business and rising memory prices.
Q: What are Samsung's plans for shareholder returns?
A: Samsung plans total shareholder returns between 90 trillion and 110 trillion won for 2026, including dividends and share repurchases, with final details to be decided in January 2027.
Q: What products is Samsung focusing on to meet AI memory demand?
A: Samsung aims to increase sales of high-bandwidth memory, server DRAM, and solid-state drives to meet AI customer needs.
