Samsung Reports Record Q2 Operating Profit of $62 Billion Driven by Strong AI Chip Demand
Samsung Electronics reported a record second-quarter operating profit of 89.5 trillion won ($62 billion), marking an 1,814% increase year over year due to surging demand for memory chips used in artificial intelligence (AI) servers. Revenue rose by 28% quarter-over-quarter to reach 171.5 trillion won, setting a new company record. The Device Solutions division saw sales jump 56%, with the memory unit achieving all-time highs in both revenue and profit as Samsung prioritized server products for AI capacity needs. Samsung has ramped up production of HBM4 chips used in AI processors and shipped samples of its next-generation version, HBM4E. The company anticipates continued demand through 2026 due to expanding AI infrastructure spending. Despite the strong earnings report, Samsung's stock fell over 12% on Wednesday amid investor concerns about overheated expectations for AI-related profits. The results follow a broader selloff in South Korean chip stocks and come as rival SK Hynix also reported record profit but missed estimates. Analysts suggest that Samsung’s memory strength is helping it gain market share across other business units, with the AI-driven rally continuing to shape the KOSPI index.
Tickers: $SKHYV
Topics: AI HBM4 Memory Chips Samsung Electronics Server Demand