Samsung posts record Q2 profit on AI chip boom

Samsung Electronics on Thursday reported a 19-fold surge in second-quarter operating profit, reaching a record 89.4 trillion won ($61.9 billion), as relentless demand for artificial intelligence memory chips more than compensated for weakness in its mobile division. The results, released alongside the company's earnings call on July 30, confirmed preliminary guidance issued earlier this month.news.samsung+1

AI Chips Drive Historic Results

The South Korean company's April-to-June profit dwarfed the 4.68 trillion won it earned in the same period a year earlier, according to Reuters. Revenue rose 129% year-over-year to approximately 171 trillion won. The gains were fueled by surging prices for DRAM and NAND memory chips, particularly high-bandwidth memory (HBM) used in AI accelerators built by companies like Nvidia ↘ 1.47%.reuters+1

Samsung has been ramping supply of its latest HBM4 chips for next-generation AI platforms, with the company shipping faster HBM4E samples to customers earlier this year. Industry analysts project the HBM market will reach $54.6 billion in 2026 as each AI GPU requires multiple HBM modules.pneda+2

Stock Reaction and Market Context

Despite the record-breaking results, Samsung's shares had already fallen nearly 7% when the preliminary earnings figure was disclosed on July 7, as investors weighed concerns about capital expenditure requirements. The stock has gained roughly 74% year-to-date, according to market data, reflecting the broader AI-driven rally across semiconductor makers.marketscreener+1

The results come as the wider memory chip sector faces intense demand. Rival SK Hynix ↘ 3.12% reported a 557% jump in its own second-quarter profit, though it missed analyst forecasts. The divergent market reactions underscore how investors are scrutinizing not just profits but sustainability of spending and supply commitments.marketscreener

Mobile Weakness Offset

Samsung's mobile division posted weaker earnings in the quarter, though the company did not provide a divisional breakdown in its preliminary release. The full earnings report released Thursday is expected to detail the extent of mobile losses. Samsung's first quarter had already set records, with 133.9 trillion won in revenue and 57.2 trillion won in operating profit, making the second quarter's results a continuation of what analysts describe as an unprecedented semiconductor super-cycle driven by AI infrastructure buildout.news.samsung+1