Samsung Electronics expects AI-related investment to hit a record high next year, prolonging the memory chip shortage even as doubts grow over whether the spending can be sustained and deliver sufficient returns. Operating profit at the world's largest memory-chip maker fell just short of analyst estimates despite soaring almost 800 per cent to Won107.4tn ($80bn) in the July to September quarter compared with the same period last year. Net profit rose more than sixfold to Won75.1tn ($56.1bn).
The South Korean company said on Thursday it expected AI infrastructure spending to reach a "historic level" in 2027, with AI-driven demand far exceeding industry supply compared with this year. Despite the upbeat outlook, Samsung shares fell more than 4 per cent in Seoul, bringing the decline over the past month to 14 per cent.
Shares in rival SK Hynix rose 2 per cent after it reported better than expected quarterly earnings on Wednesday. The company also gave a bullish outlook on memory demand, forecasting persistent chip shortages through to 2030 on broader AI adoption.
Investor uncertainty about the hundreds of billions of dollars being spent on AI infrastructure has weighed on share prices. Samsung and SK Hynix alone account for about half the Kospi index, which fell more than 2 per cent on Thursday and has shed about 14 per cent over the past month.
Source: Financial Times Companies · Summarized by HeadlinesBriefing