Samsung Q4 2025: Best Quarter Ever—But SK Hynix Just Overtook Them

Samsung just posted its best quarter in company history. Operating profit more than tripled year-over-year, driven entirely by memory chips—the DRAM and NAND that power AI data centers.

But here's the twist: While Samsung was celebrating record profits, SK Hynix quietly overtook them in annual operating profit for the first time ever. SK Hynix posted 47.2 trillion KRW for full-year 2025 vs Samsung's 43.6 trillion KRW.

That's a seismic shift in the semiconductor industry. Samsung is still the bigger company, but Hynix is winning the HBM race.

The Numbers

• Revenue: 93.8 trillion KRW (~$65.5B USD), up 24% YoY
• Operating profit: 20.1 trillion KRW (~$14B USD), up 209% YoY
• Net profit: 19.6 trillion KRW (~$13.7B USD), up 151% YoY

For context, Samsung's Q4 operating profit of 20.1T KRW broke the previous record of 17.6T KRW set in Q3 2018. This wasn't just a good quarter—it was the best quarter Samsung has ever had.

The stock opened up 2.6% but then reversed to close down 1.5%. Mixed reaction.

The Memory Chip Boom

Samsung's memory division—which makes DRAM and NAND chips—is the star of the show. The Device Solutions (DS) division (which includes both Memory and Foundry) brought in 44.0 trillion KRW in Q4.

Why the explosion? AI data centers need massive amounts of memory. Specifically, they need HBM (high-bandwidth memory)—specialized DRAM that sits right next to Nvidia's AI chips—and server DDR5, the standard memory for AI servers.

Here's the key context: Memory prices surged 40-50% in Q4. That's the direct mechanism behind the profit explosion. Demand is high, supply is tight, and Samsung (along with SK Hynix and Micron) is printing money.

Samsung has been playing catch-up to SK Hynix in HBM, but Q4 showed they're closing the gap. They're ramping up production of HBM4 (the next generation, planned for 2026) and expect the AI boom to keep driving demand through the year.

The Smartphone Problem

While memory chips are booming, Samsung's smartphone business is struggling. The Device Experience (DX) division (phones, TVs, appliances) grew revenue by 9% to 44.3 trillion KRW, but operating profit fell 43% to just 1.3 trillion KRW.

Translation: Samsung is selling more phones, but making way less money on each one. Competition from Chinese brands (especially in mid-range phones) is squeezing margins hard.

What's Next

Samsung's guidance for 2026 is all about AI:

• HBM4 mass production starting in Q1 2026, including an industry-leading 11.7Gbps version
• Expand AI-related products: more DDR5, SOCAMM2, GDDR7, and high-performance SSDs for AI workloads
• Lead the AI era by partnering closely with customers (read: Nvidia, AMD, and the big cloud providers)

Samsung also hit a major technology milestone: mass production of 2nm chips and began shipments of 4nm HBM base-die products.

For full-year 2025, Samsung posted 333.6 trillion KRW in revenue (up 11%) and 43.6 trillion KRW in operating profit (up 33%). After a rough 2023 and early 2024, this was Samsung's turnaround year.

The SK Hynix Story

Here's the part Samsung doesn't want to talk about: SK Hynix posted 47.2 trillion KRW in operating profit for full-year 2025, beating Samsung's 43.6 trillion KRW.

This is the first time in history that SK Hynix has overtaken Samsung in annual operating profit. Why? Because Hynix is dominating HBM, the most profitable memory product right now.

Hynix supplies HBM to Nvidia for its AI chips. Samsung is trying to catch up, but they're behind. That's why Hynix is winning the profit race despite being a smaller company overall.

This is a huge deal in the semiconductor industry. Samsung is still the bigger player, but Hynix is eating their lunch in the most important product category.

Samsung Display Had a Strong Quarter Too

One more thing: Samsung Display (the division that makes OLED screens) had a blowout quarter—revenue of 9.5 trillion KRW and operating profit of 2.0 trillion KRW (doubled year-over-year).

Why? iPhone demand (Apple uses Samsung OLED screens) and foldable phone growth. This division is often overlooked but it's quietly printing money.

The Bottom Line

Samsung's Q4 was a blowout—the best quarter in company history. But it's a tale of two businesses:

• Memory chips are printing money thanks to AI and 40-50% price increases
• Smartphones are barely profitable due to Chinese competition

The bigger story is SK Hynix overtaking Samsung in annual operating profit for the first time ever. Samsung is betting big on HBM and AI-related memory products to catch up, but Hynix has a head start.

If the AI boom continues and memory prices stay high, Samsung's memory division will keep thriving. But if the boom slows down or prices fall, the smartphone problem becomes a much bigger issue.

And if Samsung can't close the gap with SK Hynix in HBM, they risk losing their leadership position in the semiconductor industry.