Samsung Electronics reported that its operating profit more than tripled in the fourth quarter of 2025, reaching a record high, as demand for memory chips used in artificial intelligence applications surged. The South Korean tech giant forecast continued strong chip demand in 2026, reflecting the broader global race to supply AI infrastructure, according to a statement cited by Reuters.
The company posted 20 trillion won ($13.98 billion) in operating profit for the October to December period, in line with its own guidance and up from 6.49 trillion won a year earlier. Revenue climbed 24% to 93.8 trillion won. Samsung’s chip division, its primary profit driver, saw operating profit soar 470% to 16.4 trillion won, while profits from its mobile phone unit fell to 1.9 trillion won, pressured by rising memory chip prices.
Samsung warned that escalating memory chip costs are weighing on both its smartphone and display operations, and highlighted ongoing risks, including global tariffs. Co-CEO TM Roh described the current chip shortage as “unprecedented” in an interview with Reuters and did not rule out the possibility of raising prices to offset the supply crunch. Meanwhile, the company’s display division more than doubled profits to 2 trillion won, buoyed by strong sales for Apple’s iPhone 17 series. However, Samsung anticipates that rising chip costs may force price negotiations with customers and weaken smartphone demand in the current quarter.
Looking ahead, Samsung said it is on track to begin delivering its next-generation high-bandwidth memory (HBM) chips, HBM4, in the first quarter of 2026. Analysts expect the initial shipments to go to Nvidia, a key player in AI computing. Samsung has been striving to catch up with rival SK Hynix, a major supplier of advanced memory chips critical for Nvidia’s AI accelerators, after supply delays affected its earnings and share price last year. SK Hynix also reported record fourth-quarter profits and said large-scale production of its next-generation HBM chips is underway to meet rising customer demand.
The results highlight the powerful pricing leverage of the world’s top memory chipmaker amid the AI boom, but they also underscore the pressures on Samsung’s downstream businesses. As global AI adoption continues to accelerate, memory supply constraints and rising costs are likely to remain key challenges for the company in 2026.
