Samsung surpassed Nvidia with its third-quarter operating profit

Samsung Electronics reported an operating profit of 107.4 trillion won (approximately $75 billion) in the third quarter, surpassing Nvidia's estimated profit of 97 trillion won and becoming the company with the highest quarterly operating profit in the world.

According to data released by Samsung Electronics, the company's operating profit increased by 783 percent compared to the same period last year and by 20 percent compared to the previous quarter. This result surpassed Nvidia's estimated operating profit of 97 trillion won for the same period, making the South Korean company the one with the highest quarterly operating profit in the world during that time. The increase in financial results was driven by growing demand for advanced memory chips required to operate artificial intelligence systems.

The business segment covering memory products such as DRAM and NAND flash stood out in Samsung's profit increase. Rising investments in artificial intelligence data centers are supporting the demand for high-performance memory solutions. Particularly, high bandwidth memory (HBM) is considered a critical component for the performance of artificial intelligence accelerators. KB Securities analysts predict that the increase in HBM prices could continue to support Samsung's profitability.

On the other hand, KB Securities expects Samsung's fourth-quarter operating profit to reach 114 trillion won. The institution maintained its "Buy" recommendation for Samsung shares and set its target price at 600,000 won.