Samsung Electronics forecast a roughly 19-fold jump in second-quarter operating profit, reaching 89.5 trillion won compared to analyst expectations of 88.13 trillion won, according to financial disclosures released by the company. The South Korean technology giant attributes the surge to sustained artificial intelligence demand for memory chips, setting new records in dynamic random-access memory and NAND sales as the company scaled up high-bandwidth memory production.
AI Server Demand Fuels Record Memory Sales at Samsung
Proactively addressing artificial intelligence server demand served as the primary catalyst for Samsung’s record-breaking memory earnings, according to company statements. The strategy enabled the firm to achieve all-time high sales for both DRAM and NAND flash memory products. By scaling up high-bandwidth memory sales and shipping the industry’s first HBM4E samples to major customers, Samsung capitalized on the rapid expansion of global data center infrastructure.
Revenue for the quarter reached 171.5 trillion won, falling slightly short of LSEG SmartEstimates of 172.65 trillion won but reflecting a 130% increase year on year. Operating profit climbed 1,814% compared to the same period last year, while jumping over 56% from the previous quarter. Both top- and bottom-line figures aligned closely with preliminary guidance issued earlier in the month.
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Second-Half Outlook and Broadcom Collaboration
Looking ahead to the remainder of the year, Samsung anticipates robust demand for memory centered on servers and continuous AI infrastructure capital expenditures, driven by broader adoption of agentic AI technologies. The company projects accelerating growth in demand for server DRAM, enterprise solid-state drives, and high-bandwidth memory variants.
To solidify its market position, Samsung recently unveiled a product lineup featuring new foldable smartphones. Alongside the hardware launch, the company announced an expanded strategic collaboration with Broadcom spanning both memory and foundry technologies, aimed at capturing a larger share of specialized AI hardware contracts.
Market Contrast With SK Hynix
While Samsung extended its record run, domestic rival SK Hynix reported a contrasting market reaction on Wednesday despite posting its own record second-quarter profit. SK Hynix missed consensus analyst estimates, sending its share prices down nearly 10% in subsequent trading sessions. In contrast, shares of Samsung traded up 1.6% following its earnings release.
Frequently Asked Questions
What drove Samsung’s second-quarter profit surge?
Samsung reported a roughly 19-fold increase in operating profit driven by sustained, AI-driven demand for memory chips, resulting in record DRAM and NAND sales.
How did Samsung’s revenue compare to analyst expectations?
Samsung posted revenue of 171.5 trillion won, which was slightly below the LSEG SmartEstimate of 172.65 trillion won, though operating profit beat expectations at 89.5 trillion won.
What are Samsung’s expectations for the second half of the year?
The company expects robust demand for server-centered memory, ongoing AI infrastructure capex, and accelerating demand for server DRAM, eSSDs, and high-bandwidth memory.
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