Samsung Record Profit Meets Slowing Chip Momentum

Samsung Electronics forecast record third-quarter 2026 operating profit of 107.4 trillion won, up 782.5% year on year, on revenue of about 195 trillion won. AI server demand and tight supply have driven memory-chip earnings, and the forecast profit would exceed Samsung’s full-year 2025 operating profit. However, it fell slightly short of analyst expectations, while profit growth slowed from the previous quarter. DRAM price growth is also expected to ease sharply from the second quarter, adding to concerns about fading chip-price momentum and rising inventories. Samsung shares fell 2.42% on 8 October and remained about 30% below their 18 June peak. Investors are weighing whether record Samsung profits are already priced in, alongside a stronger won, expanding Chinese memory capacity and the costs of HBM and advanced-chip investment. The company expects its HBM market share to increase from about 20% to 34% in 2026, but its foundry business remains unprofitable. The latest update also points to pressure on Samsung’s mobile and consumer electronics business: the division is estimated to have lost 0.6 trillion won, while smartphone shipments fell 9% sequentially. Reports say Samsung plans to cut fourth-quarter phone production by 20%–30% and raise Galaxy S26 prices. Higher memory costs support Samsung’s chip profits but can also weigh on its device business. Citi sees potential upside from HBM4 pricing, although the durability of cloud companies’ AI spending remains uncertain. Traders will watch Samsung’s 29 October briefing for guidance on 2027 memory supply and demand, long-term contracts, capital spending and shareholder returns. The results may influence sentiment across the technology sector, but have no direct impact on cryptocurrency prices.