Samsung posts 19-fold profit jump on AI chip demand

Samsung Electronics estimated Q2 operating profit of about 89 trillion won, a roughly 19-fold jump from a year earlier and above analyst consensus.reuters+1
The result extends a streak driven by surging AI memory demand, with DRAM and NAND flash prices climbing sharply as data center buildouts strain global supply.koreaherald+1
Shares fell during Monday's Seoul session despite the earnings beat, with some analysts noting revenue may have missed the most optimistic forecasts.digitaltoday+1

Samsung Electronics reported preliminary second-quarter operating profit that surged roughly 19-fold from a year earlier, beating analyst expectations and marking a third consecutive quarterly record, as insatiable demand for artificial intelligence infrastructure continues to strain global memory supply.

A Third Straight Record

The world's largest memory chipmaker flagged operating profit of approximately 89 trillion won for the April-to-June quarter, up from 4.7 trillion won in the same period last year, according to Reuters. The result exceeded the LSEG SmartEstimate consensus of around 86 trillion won compiled from 30 analysts and also topped a FactSet consensus of 85 trillion won.reuters+2

The earnings guidance, released ahead of detailed results expected later this month, extends a streak that began when Samsung posted a record 20 trillion won profit in Q4 2025 and then shattered it with 57.2 trillion won in Q1 2026. The chip division accounted for more than 90 percent of company-wide earnings in Q1, and analysts expected the memory unit to drive even faster growth through the remainder of the year.marketwatch+3

AI Memory Shortage Fuels the Boom

The profit explosion reflects a prolonged shortage across DRAM, NAND flash, and high-bandwidth memory as global tech firms pour capital into AI data centers. Analysts estimated DRAM average selling prices rose roughly 45 percent quarter-on-quarter while NAND flash climbed about 50 percent, according to NH Investment & Securities analyst Ryu Young-ho. HBM production capacity remains fully booked for the rest of 2026, Samsung said after its Q1 results, with sixth-generation HBM4 now in mass production.notebookcheck+1

The memory cycle has proved unusually durable. At a recent town hall, Samsung's semiconductor division president Kim Yong-kwan said the unit is on track to deliver more operating profit this year than the company earned in its previous 40 years combined. Full-year operating profit is projected at roughly 300 to 345 trillion won.koreaherald+2

Shares Dip Despite the Beat

Despite the record profit, Samsung shares fell during Monday's session in Seoul, closing at 303,000 won after opening at 320,000 won. Brokerage estimates for Q2 operating profit ranged widely from 80 trillion to 92 trillion won, and some firms had projected revenue above 179 trillion won. The revenue figure appears to have missed the most optimistic forecasts, tempering enthusiasm even as profits exceeded consensus.digitaltoday+1

The results arrive one year after Samsung posted a 56 percent profit decline in Q2 2025, when weak HBM shipments and U.S. export controls on AI chips to China hammered the semiconductor business. The turnaround underscores how rapidly Samsung recovered once its HBM qualification issues with Nvidia were resolved and memory prices began their steep ascent.reuters

Sources (38)