Samsung's fourth-quarter profit triples, beating estimates as AI chip demand fuels memory shortage

Core Insights - Samsung Electronics reported a record fourth-quarter profit, exceeding analysts' expectations, driven by a memory chip shortage and strong demand for AI servers [1][2] Financial Performance - Quarterly revenue increased by approximately 24% year-over-year, reaching a new record of 93.8 trillion Korean won ($65.58 billion), surpassing the expected 93.318 trillion won [6] - Operating profit surged over 200% year-over-year, amounting to 20.1 trillion won, slightly above the expected 20.018 trillion won [6] Memory Business Impact - The memory segment significantly contributed to earnings, achieving all-time highs in quarterly revenue and operating profit, fueled by a market price surge and sales of high-bandwidth memory (HBM) [3] - HBM, essential for AI data center chipsets, has seen increased focus from Samsung over the past year, aligning with rising demand from AI chipset manufacturers like Nvidia [3][4] Market Dynamics - The demand for HBM has outstripped supply, leading to a broader market shortage and increased prices for chips used in personal computers and mobile devices [4] - Memory companies, including Samsung and its competitor SK Hynix, are prioritizing capacity to meet this lucrative demand, resulting in record earnings for both firms [4]