Samsung's Leap Towards AI-Driven Chip Dominance

Samsung Electronics announced progress on major AI-focused chip supply contracts, alleviating investor concerns after a dip in semiconductor profits. Despite a significant annual increase in quarterly profits, earnings fell compared to the previous quarter due to unique costs and foreign exchange impacts.

Samsung Electronics reported significant advancement in its supply deal for AI-centered chips, aiming to soothe investor worries following a slump in semiconductor profits last quarter.

The South Korean tech behemoth disclosed a 277% year-over-year surge in operating profit for Q3, at 9.18 trillion won (USD 6.65 billion), despite a 12% quarter-over-quarter drop due to extraordinary expenses like employee incentives and fluctuations in the US dollar's value.

While Samsung's semiconductor wing posted a bounce back in operating profit to 3.86 trillion won, it marked a notable fall from the April-June earnings. Solid AI and server chip demands were overshadowed by a tepid mobile chip market impacted by Chinese competitors. Crucially, Samsung fell behind in HBM3E memory chips, which bolster AI applications, prompting the company's pledge to bolster sales in this sector amidst growing Chinese competition.

(With inputs from agencies.)