SEOUL, South Korea (AP) — Samsung Electronics on Thursday reported a 32.5% increase in operating profit for the third quarter, driven by rebounding demand for its computer memory chips, which the company expects will continue to grow on the back of artificial intelligence.

The South Korean technology giant set a new high in quarterly revenue, which rose nearly 9% to 86 trillion won ($60.4 billion) for the July-September period, fueled by increased sales of semiconductor products and mobile phones.

Samsung, which has dual strength in both components and finished products, said it expects the demand driven by AI to further expand market opportunities in coming months. SK Hynix, another major South Korean chipmaker, also reported a record operating profit of 11.4 trillion won ($8 billion) on Wednesday, which it also described as AI-related growth.

Samsung’s operating profit of 12.2 trillion won ($8.6 billion) in the last quarter marked a 160% increase from the previous quarter, when it said its semiconductor earnings were weighed down by inventory value adjustments and one-off costs related to technology export restrictions on China.

Samsung’s semiconductor division posted 7 trillion in operating profit for the third quarter, with the company reporting strong sales in high bandwidth memory chips, which are used to power AI applications.

“The semiconductor market is expected to remain strong, driven by ongoing AI investment momentum,” the company said in a statement. The company said an advanced version of its high-bandwidth memory chips, the HBM3E, is “currently in mass production and being sold to all relevant customers,” while samples of its next-generation product, the HBM4, are being shipped to key clients.