On October 30, Samsung Electronics, the world's leading memory chip manufacturer, released its third-quarter results, showing that the company's operating profit rebounded strongly and was better than market expectations, benefiting from the recovery of the chip business under the wave of AI.

Specifically, Samsung's revenue in the third quarter was 86.1 trillion won, up 8.85 percent from a year earlier, higher than LSEG's SmartEstimate expectation of 85.93 trillion won. Operating profit for the quarter was 12.2 trillion won, up 32.9 percent from a year earlier, the highest level in more than three years and also higher than LSEG's SmartEstimate expectation of 11.25 trillion won. Net profit was 12.01 trillion won, with an estimate of 9.29 trillion won.

Samsung's third-quarter results rebounded significantly from the previous quarter, and the company's second-quarter results were dragged down by a sharp decline in its chip business. Samsung's third-quarter operating profit increased by 160 from the second quarter (4.7 trillion won), and revenue increased by 15.5 from the previous quarter.

Driven by strong demand in the field of artificial intelligence, Samsung's cash cow business (core source of profit)-chip business-third-quarter sales increased by 19% compared with the previous quarter, of which quarterly sales of memory chip business hit a record high. The chip business achieved an operating profit of 7 trillion won in the third quarter, an increase of 80% year-on-year, much higher than the 400 billion won in the second quarter.

Samsung's performance improved, reflecting the unexpected popularity of traditional memory chips. Behind this phenomenon, on the one hand, the industry has turned to the production of advanced AI chips, which has led to a tightening of the supply of traditional chips. On the other hand, the demand for traditional chips in data centers under the AI boom is increasing.