AI chip shortage could worsen in 2027: What Samsung’s record $80 billion quarterly profit tells us

Samsung Electronics reported a record operating profit of 107.44 trillion won ($80.04 billion) in the third quarter, as robust demand for artificial intelligence (AI) chips drove earnings at the world's top memory chipmaker. The company, however, warned that the chip shortage could deepen next year as AI-driven demand outpaces industry supply. Samsung's third-quarter operating profit rose 783.11% year-on-year from 12.2 trillion won.

Revenue rose 126.88% from a year earlier and 13.85% from the previous quarter to 195.25 trillion won. The results were broadly in line with analysts' expectations. Samsung's revenue compared with LSEG SmartEstimates, weighted towards forecasts from more consistently accurate analysts, was 195.25 trillion won against expectations of 195.79 trillion won.

Operating profit was 107.44 trillion won, compared with 107.66 trillion won expected. Samsung's semiconductor division posted a 15-fold jump in third-quarter profit from a year earlier to 106.5 trillion won, accounting for almost all of the group's total profit. Revenue: 195.25 trillion won vs.

195.79 trillion won expectedOperating profit: 107.44 trillion won vs. 107.66 trillion won expectedSamsung warns of worsening chip shortageSamsung said it expected demand for memory chips to outpace industry supply by a wider margin in 2027 as investment in AI infrastructure expands."In 2027, the (memory) business expects AI infrastructure capital expenditure to reach a historic level as the AI ecosystem expands," Samsung said in a statement, according to Reuters." Increasing AI-driven demand will far exceed the industry supply in comparison with 2026," the company said.

Samsung's outlook echoed that of South Korean rival SK Hynix, which reported strong earnings on Wednesday and gave an upbeat forecast, helping ease market concerns that AI-driven chip earnings could lose momentum. However, concerns about financing for AI infrastructure and rising competition from China have weighed on chip stocks in recent months, Reuters reported. Shares in Samsung fell 4.6% in early trade, while SK Hynix rose 0.7%.

Samsung invests in AI infrastructureDuring the third quarter, Samsung Electronics and five of its affiliates announced a combined $1 billion investment in KKR-backed Helix Digital Infrastructure. Samsung Electronics will invest $500 million, with the remaining amount coming from its affiliates. Samsung has also announced a partnership with French AI startup Mistral AI to use AI technologies in its semiconductor operations, including chip design and manufacturing.

The company also led Mistral’s Series D funding round, CNBC reported. Samsung said it would pay 30 trillion won in dividends for the third quarter ended in September, or 4,601 won per share, in line with expectations, Reuters reported.(With inputs from Reuters and CNBC)