Samsung Electronics (SSNLF), a South Korean electronics and semiconductor producer, ended Thursday's Seoul session 0.7% lower after rising as much as 8.4%, despite reporting a more than 250-fold increase in semiconductor profit. The chip division generated operating profit of 89.2 trillion won, equivalent to approximately $61.7 billion. Samsung said global semiconductor shortages were expected to intensify and continue through 2028 as artificial-intelligence infrastructure increased memory demand.
The semiconductor operation produced a record 70% operating margin, but investors questioned whether those margins could continue as technology companies absorbed higher AI infrastructure costs. Samsung's mobile business recorded its first quarterly loss, totaling 700 billion won, because higher memory costs increased smartphone-production expenses. Overall group revenue increased 130% to 171.5 trillion won, while total operating profit reached 89.5 trillion won.
Samsung signed multiyear supply agreements with the five largest global data-center companies and was approaching agreements with five other major customers. The contracts typically last at least five years and include upfront payments and minimum prices, with management seeking to cover approximately two-thirds of memory production through longer-term arrangements. Samsung also expects HBM4 revenue to more than triple during the third quarter. Investors may now assess whether the financial benefits from tighter memory supply can continue outweighing higher costs in Samsung's smartphone operation and concerns about the durability of hyperscaler demand.