October 28, 2018, Samsung headquarters in Mountain View, California.
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Samsung Electronics said Thursday its fourth-quarter profit soared more than threefold, setting a new record and beating analyst expectations, as a memory chip shortage and strong demand for artificial intelligence servers boosted revenue.
Samsung Electronics’ stock price rose 2.58% on Thursday, but reversed and fell 1.54% in morning trading.
Samsung executives said at an earnings conference that while rising memory prices are benefiting the company’s chip business, rising costs are also expected to impact its smartphone and display businesses.
Samsung also said that although it expects to increase memory investment this year, it maintained a “conservative investment approach”, resulting in lower capital spending for the full year 2025.
Below is a comparison of Samsung’s fourth quarter results with the LSEG SmartEstimate, which emphasizes more consistently accurate analyst forecasts.
Revenue: 93.8 trillion Korean won ($65.58 billion) vs. expected 93.318 trillion won Operating profit: 20.1 trillion won vs. expected 20.18 trillion won
The South Korean tech giant’s quarterly sales increased by about 24% year-on-year, setting a new record. Meanwhile, operating profit increased by more than 200% year-on-year.
The profit exceeded Samsung’s long-standing record of 17.6 trillion won set in the third quarter of 2018 and matched Samsung’s own guidance of about 20 trillion won.
Samsung, South Korea’s largest company by market capitalization, is a leading provider of memory chips, semiconductor foundry services, and smartphones.
The company said in its earnings report that its memory business contributed to the boost in revenue, achieving record quarterly sales and operating profit, driven by higher overall market prices, sales of high-bandwidth memory and other high-value-added products.
High-bandwidth memory (HBM) is a type of memory used in chipsets for AI data centers, and Samsung has shifted its focus to this technology over the past year in its Device Solutions (DS) division.
AI chipset makers such as Nvidia are seeking limited supplies of HBM as demand outstrips supply.
Memory companies are prioritizing capacity to meet lucrative demand, creating shortages across the market and increasing prices for chips used in personal computers and mobile devices.
This was a tailwind not only for memory giants such as Samsung but also for rival SK Hynix, which announced record profits on Wednesday.
“Looking ahead to the first quarter of 2026, the DS segment expects continued growth in AI and server demand, creating more opportunities for structural growth,” the company said.
“Accordingly, the division will continue to focus on high-performance products and focus on profitability,” the company added.
smartphone
Samsung’s Mobile Experience and Networks business, which is responsible for developing and selling smartphones, tablets, wearables and other devices, posted weak performance in the fourth quarter.
The division’s operating profit decreased to 1.9 trillion won, down 9.5% from the same period last year and more than 45% from the previous quarter.
The company said the loss was due to “reduced launch effects” due to new smartphone models and intense market competition.
Samsung said it plans to introduce what it calls the “Agentic AI Experience” in conjunction with the launch of the next Galaxy S26 series in the first quarter of 2026 to strengthen its promotion of AI smartphones.
The company also aims to address rising component costs by leveraging supplier partnerships to optimize resources and supply chains.
Meanwhile, profits from Samsung’s display business, which supplies screens for consumer electronics, more than doubled to 2 trillion won in the December quarter, supported by strong sales of smartphone brands.
