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Samsung Electronics delivered a sharp earnings surprise after reporting that its fourth-quarter operating profit more than tripled, powered by a surge in demand for memory chips used in artificial intelligence systems.
The South Korean technology giant said profit climbed to 20.1 trillion won for the October-to-December period, exceeding market expectations and marking its strongest quarterly result on record. Revenue rose 24% from a year earlier to 93.8 trillion won, also setting a high.
The results reflect mounting pressure on global chip supply as companies race to build AI data centers. Samsung said its memory division was the primary driver of earnings, benefiting from higher prices and booming sales of high-bandwidth memory, or HBM, which is essential for AI accelerators.
HBM demand has surged as major chip designers compete for limited supply, pushing memory manufacturers to redirect capacity toward higher-margin products. That shift has tightened availability across the broader market, lifting prices for chips used in smartphones, personal computers, and other consumer devices.
Samsung said its Device Solutions division recorded all-time highs in both quarterly revenue and operating profit, with HBM and other premium memory products accounting for a growing share of sales. The company added that AI-related server demand is expected to remain strong into early 2026.
Shares of Samsung initially rose following the earnings release before slipping in early trading, reflecting concerns about the impact of higher chip prices on the company's non-memory businesses.
Those pressures were evident in Samsung's mobile and networks unit, which posted weaker results during the quarter. Operating profit at the division fell to 1.9 trillion won, down from a year earlier, as intense competition and higher component costs weighed on margins.
Executives warned that rising memory prices could continue to create headwinds for smartphones and displays, even as they bolster profits in the semiconductor segment. Samsung said it plans to offset those challenges through tighter cost controls and supply chain optimization.
Looking ahead, the company said it would expand its focus on advanced AI-related products while preparing to launch its next generation of Galaxy smartphones. Samsung added that it aims to balance profitability with long-term growth as the global chip shortage shows few signs of easing.
