Samsung Electronics Achieves Record Revenue and Profit in Q3
Samsung Electronics has reached a significant milestone by achieving its highest-ever quarterly revenue in the third quarter (July–September). The company’s operating profit also exceeded market expectations, marking an “earnings surprise.” This success follows strong results from other industry players such as Taiwan’s TSMC, SK Hynix, and U.S. semiconductor firms, all of which are anticipated to report record performances. Analysts believe that global semiconductor companies have entered a full-fledged supercycle in the industry.
The semiconductor industry has identified four clear signals indicating the start of a new supercycle. Unlike previous cycles driven primarily by IT and mobile sectors, the current cycle is characterized by diversified growth drivers such as AI, data centers, and autonomous driving. Structural features like high-performance, high-value memory (HBM) and foundry competition are also new elements compared to earlier cycles.
Samsung Electronics: 31.8% Increase in Q3 Operating Profit
Samsung Electronics announced on the 14th that its preliminary Q3 revenue increased by 8.7% year-on-year to 86 trillion Korean won, with operating profit surging 31.8% to 12.1 trillion Korean won. This outperformed market expectations of 10.1 trillion Korean won in operating profit. It marks Samsung’s return to the 10 trillion Korean won operating profit range for the first time since Q2 2022, three years ago. This is also the first time the company has surpassed 80 trillion Korean won in quarterly revenue.
Compared to Q2, when operating profit plummeted due to a 1 trillion Korean won provision for inventory losses from unsold memory chips amid export restrictions, profits skyrocketed by 158.55%. The tech industry analyzes that Samsung’s recovery began as the semiconductor supercycle, characterized by rising demand and soaring prices, took off. Enhancing technological competitiveness in HBM (High Bandwidth Memory) is also cited as a key factor in the improved performance.
A source from the tech industry said, “Samsung, which had lost its top position in semiconductors to SK Hynix after years of dominance, is now reclaiming its crown.” Although business unit results were not disclosed, securities firms estimate that the semiconductor division (DS Division) accounted for over half of the total Q3 operating profit, ranging between 6 trillion to 7 trillion Korean won.
Four Signals of the Semiconductor Supercycle
The semiconductor supercycle is being driven by repeated signals of surging demand, supply shortages, and soaring prices. This marks the first supercycle since 2018, seven years ago. The tech industry expects it to last until at least 2027. Analysts identify four clear signals indicating the supercycle’s onset.
First, the large-scale construction of AI data centers is rapidly increasing demand for AI accelerators, which in turn boosts the need for HBM. Companies like Samsung Electronics and SK Hynix are set to benefit. Notably, Samsung recently passed NVIDIA’s HBM3E quality tests and is now in discussions for supply volumes. This positions Samsung to compete on equal footing with market leader SK Hynix in the next-generation HBM4 supply race.
Ryu Young-ho, an analyst at NH Investment & Securities, said, “Samsung’s previously sluggish HBM shipments are recovering through diversified customer acquisitions, including AMD. Samsung is expected to achieve the highest growth rate among the top three DRAM companies by 2026.”
The second signal is the global semiconductor companies’ focus on HBM production, leading to reduced general-purpose DRAM output. HBM is created by stacking and bundling DRAM like apartments. Memory semiconductor companies like Samsung have converted DRAM production lines to high-value HBM, resulting in decreased DRAM output. Meanwhile, demand for server-grade DRAM has risen as general servers, massively built between 2017–2018, approach their replacement cycle.
According to TrendForce, global DRAM suppliers’ average inventory stood at a record low of 3.3 weeks as of late Q3. Reduced DRAM supply has driven price surges. DRAMeXchange reported that the average fixed transaction price for PC-grade DRAM (DDR4 8Gb) rose 10.5% month-on-month to $6.3 in September—the first time DDR4 prices exceeded $6 since January 2019, over six years and eight months ago.
The third signal is the expansion of AI into inference domains, necessitating separate storage spaces for data, which has boosted enterprise SSD (eSSD) sales. Samsung’s products like LPDDR and GDDR are increasingly utilized in NVIDIA’s new AI technologies, further elevating memory semiconductor value. Chinese memory companies like YMTC and CXMT remain unable to catch up with Korean firms in cutting-edge DRAM and are struggling to increase HBM production, another sign of the supercycle.
A Structurally Different Supercycle
The tech industry analyzes that the 2025 semiconductor supercycle is structurally different from previous ones. Based on this, it predicts the semiconductor boom will continue until at least 2027. Past supercycles, such as in 2018 and earlier, were driven by smartphone and PC replacement demand and early cloud investments. This supercycle is led by big tech’s AI investments, forming new trends. Large-scale data center construction for AI computing, high-performance computing, and autonomous driving semiconductors lead the market, with IoT, mobile, and consumer electronics forming auxiliary growth sectors.
The products driving the supercycle have also shifted qualitatively from general-purpose DRAM and NAND flash to high-performance, high-value, high-margin premium memory products like HBM for AI accelerators. Historically, semiconductor cycles repeated every 3–4 or 4–5 years due to supply-demand imbalances, price fluctuations, downturns, and recoveries. However, the industry is now seeing a “de-cyclicalization” trend, with structural changes like increased custom AI and HBM orders weakening the cyclical nature.
Kim Sun-woo, an analyst at Meritz Securities, said, “The DRAM industry is entering a structural boom. In simple terms, an investment decision for a single AI data center will have a similar effect to a temporary surge in demand for millions to tens of millions of smartphones.”
This structural supercycle is expected to directly benefit Samsung Electronics, which has the largest production capacity in the memory semiconductor industry. Son In-jun, an analyst at Heungkuk Securities, said, “By 2026, Samsung is estimated to account for 32% of DRAM and 30% of NAND flash production (based on wafer input volume), making it the biggest beneficiary of the memory supercycle.”
Samsung plans to reclaim its top position in memory semiconductors. Counterpoint Research reported that Samsung recorded $19.4 billion in memory sales in Q3, surpassing SK Hynix ($17.5 billion) to reclaim the No. 1 spot. Securities firms expect Samsung’s strong performance to continue. Korea Investment & Securities raised its 2026 operating profit estimate for Samsung to 73 trillion Korean won, a 36% increase from the previous 54 trillion Korean won.
