Samsung Electronics Memory Tailwinds Continue Despite 1 Trillion Won Net Selling by Institutions and Foreigners
Samsung Electronics has become the first Korean company to post 100 trillion won in quarterly operating profit, driven by a boom in memory chip prices. In its preliminary results announced on the 8th, Samsung reported third-quarter revenue of 195 trillion won and operating profit of 107.4 trillion won. That surpasses the record quarterly operating profits of both Nvidia ($63.7 billion, about 85.4 trillion won) and Apple ($50.9 billion, about 68.2 trillion won).
Memory drives a 55% profit margin The key engine behind the results was the DS (Device Solutions) division, which produces memory semiconductors. While division-level details were not disclosed, the company-wide operating margin came to 55.1%. The surge in memory prices lifted earnings. According to market researcher DRAMeXchange, the average spot price of PC DRAM commodity chips hit a record $26 last month. The average price of commodity NAND chips, used in memory cards and USB drives, also set a record at $30.6, rising for 21 consecutive months. "Unlike the dot-com bubble, the AI boom has a clear substance behind it, and demand is enormous," said Lee Hyo-ho, a professor of electrical and information engineering at Seoul National University. Market research firm TrendForce forecast that commodity DRAM prices will rise 10–15% quarter-on-quarter in the fourth quarter, with NAND prices up 15–20%.
Samsung's DRAM output stands at 700,000 wafers per month, the industry's largest production capacity, roughly double that of Micron, the world's No. 3 player, at 300,000 wafers. The expansion of its HBM business is also fueling growth. On its second-quarter earnings call in July, Samsung said HBM4 revenue more than tripled quarter-on-quarter in the third quarter and would account for more than 60% of total HBM revenue in the second half of the year. "HBM4 is the first generation in which Samsung's memory and foundry capabilities are beginning to create synergy within a single product," Hanwha Investment & Securities said in a note, adding that it would "lift both technological competitiveness and earnings to the next level."
Despite record earnings, Samsung shares closed lower on the day. The Device Experience (DX) division, which handles smartphones, TVs and home appliances, posted a loss in the third quarter for the second straight period due to rising costs. Brokerages estimate the DX unit's operating loss at up to 3 trillion won. Samsung shares closed at 262,000 won, down 6,500 won (2.42%) from the previous session. Institutions and foreign investors sold nearly 1 trillion won worth of Samsung shares. "Although earnings beat market expectations, profit-taking emerged, and overnight rises in U.S. Treasury yields and oil prices also weighed on sentiment," said Lee Kyung-min, an analyst at Daishin Securities.
The KOSPI closed at 6,625.93, down 177.97 points (2.62%), as both of the semiconductor giants fell. SK hynix also ended the day at 1.681 million won, down 42,000 won (2.44%).
