Samsung Electronics stock price jumped over 5% in South Korea after the company reported a strong growth in its third quarter net profit led by its chip business. Samsung share price rallied as much as 5.27% to a fresh 52-week high of 105,800 won. Samsung Electronics is South Korea’s largest company with a market capitalization of over 655.2 trillion won.
Samsung Electronics’ operating profit more than doubled from the previous quarter which was weighed down by a sharp slump in the company’s chip business.
Here are key highlights from Samsung Q3 earnings:
Samsung Q3 Earnings Highlights
Operating Profit: Samsung reported a 32.5% year-on-year (YoY) jump in operating profit to 12.2 trillion won for the third quarter led by a rebound in demand for its computer memory chips. The company’s operating profit marked a 160% increase from the previous quarter.
Revenue: Samsung set a new high in quarterly revenue. The company’s revenue for the July-September period increased 8.85% to 86 trillion won, driven by increased sales of semiconductor products and mobile phones.
Semiconductor Division: Samsung’s semiconductor division reported 7 trillion in operating profit in Q3led by strong sales in high bandwidth memory chips.
“The semiconductor market is expected to remain strong, driven by ongoing AI investment momentum,” the company said in a statement. The company said an advanced version of its high-bandwidth memory chips, the HBM3E, is “currently in mass production and being sold to all relevant customers,” while samples of its next-generation product, the HBM4, are being shipped to key clients, AP reported.
Smartphones: Samsung’s mobile experience and network businesses reported an operating profit of 3.6 trillion won, registering a growth of about 28% YoY.
Samsung forecasted that the rapid growth of the AI industry would open up new market opportunities for both its devices and chip businesses in the current quarter.
Samsung Stock Price
Samsung share price has rallied 24% in one month and has jumped 88% in six months. The stock has surged 77% in one year and has delivered 85% returns in five years.
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