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Samsung Just Made More Profit in One Quarter Than Nvidia. So Why Did Korean Stocks Fall 2.6%?
- Samsung forecast 107.4 trillion won in operating profit for July to September 2026. That's about US$77 billion and the first quarter ever above 100 trillion won.
- Profit is up 783% from a year ago. Sales rose 127% to 195 trillion won.
- The operating margin was a record 55.1%. More than half of sales became profit.
- Profit beat the 106.0 trillion won analysts expected. Sales missed the roughly 200 trillion won forecast.
- South Korea's Kospi index fell 2.62% on October 8, to 6,625.93. Full results come October 29.
A record that's hard to picture
Samsung Electronics gives an early estimate of its results a few weeks before the full report. The one it released on October 8 was the biggest in its history.
| Q3 2026 (estimate) | Change from a year ago | |
|---|---|---|
| Sales | 195 trillion won | +127% |
| Operating profit | 107.4 trillion won | +783% |
| Operating margin | 55.1% |
In US dollars, that profit is about $77 billion in three months.
For comparison, Nvidia reported about $63.7 billion in operating profit for its latest quarter. Samsung, a company many investors had written off two years ago, just out-earned the most valuable chipmaker in the world.
Where the money comes from
One product: memory chips.
Every AI data centre needs enormous amounts of memory. Chipmakers can't build factories fast enough, so there's a shortage. When something is scarce, its price goes up.
Samsung is one of the largest memory makers on Earth. It's selling:
- Standard memory (DRAM and NAND) at much higher prices than a year ago.
- High-bandwidth memory (HBM), the special type that sits beside AI processors.
Customers are now signing three-to-five-year supply contracts just to be sure they can get chips.
Not every part of Samsung is thriving. Its phone and appliance business is estimated to have lost about 2 trillion won. It has to buy memory too, and expensive memory hurts it.
So why did Korean stocks fall?
On the same day, South Korea's Kospi index dropped 2.62%. Three reasons.
1. It was expected. Analysts had forecast 106.0 trillion won. Samsung beat that by about 1%. When a great result is already priced in, there's nothing left to cheer.
2. Sales missed. Revenue came in about 5 trillion won below forecasts. In a boom, investors watch for the first sign of slowing.
3. The mood turned. Oil jumped, bond yields climbed, and a report said OpenAI's revenue is about $20 billion lower than believed. OpenAI is one of the biggest buyers of AI computing. If it has less money than thought, who keeps buying all these chips?
We saw the same thing a week ago when Micron posted a record quarter and its stock didn't move.
The lesson: memory is a boom-and-bust business
Memory chips are a commodity, like oil or wheat. Prices swing with supply and demand.
Right now demand is far ahead of supply, so profits are huge. Those profits pay for new factories. In a few years the new supply arrives, prices fall, and profits shrink. This cycle has repeated for decades.
A 55% margin is a sign of a shortage. Shortages end. Nobody knows when this one will, and that's what investors are nervous about. Our explainer on the semiconductor cycle goes deeper.
What it means for you
If you own an international or emerging-markets fund: you probably own Samsung already. It's usually one of the top holdings.
If you want more exposure: a South Korea ETF is the simple route. Know that the Kospi is dominated by just two chip companies, Samsung and SK Hynix. It isn't a diversified bet.
If you're chasing the record profit: remember that the stock price already reflects it. The question for buyers today is what happens next, not what just happened.
What to watch
- October 29: Samsung's full results and conference call, with profit broken out by division.
- Memory prices. The first sign of a turn usually shows up there.
- Big tech earnings later in October. Their spending plans are Samsung's future orders.
Frequently asked questions
How much profit did Samsung make in Q3 2026?
Samsung Electronics estimated its operating profit at 107.4 trillion won for the third quarter of 2026, about US$77 billion at 1,400 won per dollar. That is up 783% from a year earlier and 20% from the second quarter. Revenue was an estimated 195 trillion won.
Is Samsung more profitable than Nvidia?
For this one quarter, yes on operating profit. Seoul Economic Daily calculated Samsung's figure at roughly US$76.7 billion, about 20% above the US$63.7 billion Nvidia reported for its quarter ended July 2026. The two quarters cover different months, so it is a rough comparison.
Why is Samsung making so much money?
Memory chips. AI data centres need huge amounts of memory, and there is not enough to go around. Prices for standard memory and for the high-bandwidth memory used with AI processors have both risen sharply, and Samsung is one of the world's largest producers.
Why did the Kospi fall after Samsung's record profit?
The profit was already expected, sales came in below forecasts, and the wider mood was bad. Oil prices jumped, bond yields rose, and a report said OpenAI's revenue is about $20 billion lower than investors believed, which raised doubts about how long AI spending can keep growing.
How can I invest in Samsung from the US or Canada?
Samsung's main shares trade in Seoul, which most North American brokers do not offer. The simplest route is a South Korea ETF or a broad emerging-markets or international fund, where Samsung is usually one of the largest holdings. Interactive Brokers offers direct access to the Korean exchange.
Primary sources
- Seoul Economic Daily — Samsung Electronics Q3 operating profit tops 100 trillion won for first time (Oct. 8, 2026)
- CNBC — Samsung forecasts record third-quarter profit as AI boom fuels chip demand (Oct. 8, 2026)
- SiliconANGLE — Samsung forecasts record-breaking profit (Oct. 7, 2026)
- Yahoo Finance — World indices: Kospi, Nikkei 225, Hang Seng closing levels
Data & disclaimer: This article is for educational purposes only and is not financial or investment advice. Figures reflect data available as of Oct 9, 2026, and conditions change — always confirm current pricing, rates and rules with the provider before you act. Written by Elizabeta Dimoska. See our editorial standards and disclosure.
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