Samsung expects capex to rise ~60% to ~$63B in 2026, with HBM capacity sold out through 2027 and 10 long-term supply deals secured with key customers

Samsung's High Bandwidth Memory capacity is sold out through 2027, meaning you will pay more for AI-accelerated computing.

Samsung Electronics announced record-breaking financial results for the third quarter of 2026, with operating profit soaring ninefold year-over-year to KRW 107.4 trillion and revenue reaching KRW 195.3 trillion. This performance marks the first time a tech company has surpassed KRW 100 trillion in quarterly operating profit. The dramatic increase is largely attributed to surging demand for AI memory chips, with the Device Solutions division, particularly the Memory Business, contributing almost the entirety of the profit. Samsung reported strong sales of HBM4 and server SSDs, alongside gains in its Foundry Business with new 2nm orders from hyperscalers. Conversely, the company's consumer-facing divisions, including MX, Networks, VD, and DA, experienced revenue increases but reported operating losses due to rising costs and a dip in TV revenue post-major sporting events.

The significant surge in Samsung's operating profit, driven by AI demand and memory chip sales, signals a potent market concentration on advanced semiconductor solutions. This underscores the critical role of companies like Samsung in enabling next-generation AI infrastructure and suggests that sustained high demand for these specialized chips will continue to shape the semiconductor industry's financial landscape. The company's substantial investment plans, including a projected 60% increase in capital expenditure to approximately $63 billion by 2026, indicate an aggressive expansion strategy to meet this insatiable demand and maintain its leadership position.

The secured long-term supply deals with key customers for HBM and other advanced chips illustrate a tightening supply chain and a strategic shift towards more integrated partnerships between chip manufacturers and AI service providers. This situation directly impacts customers reliant on these cutting-edge components, potentially leading to longer lead times, increased pricing power for Samsung, and a strategic advantage for those who have secured these contracts. Competitors will need to accelerate their own HBM development and production capabilities to contend with Samsung's established dominance and secured market share.