Samsung set to post record quarterly profit, topping Nvidia

Samsung Electronics is expected to announce preliminary second-quarter earnings on Tuesday, July 7, with analysts forecasting the South Korean tech giant will post the highest quarterly operating profit ever recorded by a technology company.

AI-Fueled Super Cycle Drives Unprecedented Profits

According to financial data provider FnGuide, the analyst consensus for Samsung's April-June quarter stands at approximately 85.2 trillion won ($55.5 billion) in operating profit on revenue of about 174.3 trillion won, representing increases of roughly 49% and 30%, respectively, from the already record-setting first quarter. The profit figure would mark a year-on-year increase of more than 1,730%, though that partly reflects a depressed base from a year ago, when U.S. curbs on AI chip exports to China hammered Samsung's semiconductor division.reuters+3

If the consensus holds, Samsung will surpass Nvidia ↘ 1.39%, which reported $53.5 billion in operating profit for its most recent quarter ended in April, and Apple ↗ 4.84%, which posted $50.85 billion in the October-December period. Only Saudi Aramco has ever recorded a higher quarterly operating profit among private or publicly traded companies, at roughly $86.5 billion in the second quarter of 2022.sedaily

Samsung's memory chip division remains the engine. The company operates approximately 650,000 to 700,000 DRAM wafers per month, more than double the output of third-ranked Micron ↘ 5.49% and about 20% above second-ranked SK hynix. Industry analysts expect the memory division alone to approach 100 trillion won in operating profit for the quarter, driven by surging demand for high-bandwidth memory used in AI servers and rising average selling prices across DRAM and NAND product lines.koreaherald+1

Bonus Provisions Mask Even Higher Underlying Profit

Some analysts project that Samsung's real operating profit has already crossed the 100 trillion won threshold. The consensus figure includes an estimated 8 trillion to 17 trillion won set aside as provisions for bonuses tied to a labor-management agreement reached in May, according to the Seoul Economic Daily. Meritz Securities offered one of the most aggressive estimates, pegging second-quarter operating profit at 99.3 trillion won before those provisions.sedaily

Gratitude Festival Lifts Consumer Division

Beyond semiconductors, Samsung's monthlong "Gratitude Festival" campaign, which concluded on Saturday, generated an estimated 2 trillion won ($1.3 billion) in device sales, according to Aju Press, citing industry estimates. The promotion refunded 20% of each purchase in government-backed digital Onnuri gift certificates, with the total certificate value reaching approximately 400 billion won. Samsung said foot traffic at its retail stores rose 75% compared with the same period a year earlier, while visits to Samsung.com more than tripled. The sales surge is expected to provide a lift to Samsung's consumer electronics and appliance businesses, which only recently returned to profitability after posting a combined annual operating loss last year.ajupress