Samsung likely to post 18-fold jump in profit on surging AI demand for memory
Analysts said DRAM and NAND prices rose 44% and 53% in the quarter as AI data center spending kept memory supply tight.
- On Tuesday, Samsung Electronics is likely to report a record operating profit of 86 trillion won for the second quarter, as booming demand for AI infrastructure continues to strain global memory supply.
- Citi Research reported average selling prices for DRAM and NAND rose 44% and 53% respectively in the second quarter, driven by AI workloads spilling into ordinary server and storage build-outs.
- Samsung supplies memory to Nvidia, Google, and Apple, yet the company's mobile division faces margin pressure from rising component costs, which recently forced Apple to pull the $599 Mac mini.
- Analysts warn second-quarter earnings could fall short if Samsung books larger-than-expected employee bonus provisions, following a May wage deal allocating 10.5% of semiconductor division operating profit to chip workers.
- JPMorgan analysts questioned the sustainability of AI memory spending, estimated at 52% of cloud capital expenditure this year, though the memory market is expected to remain undersupplied through next year.
55 Articles
55 Articles
Samsung flags 19-fold jump in profit, but shares slump
Samsung Electronics has flagged a 19-fold jump in second-quarter operating profit, surpassing its combined earnings over the past three years, but investors wiped more than $100 billion off its market value on concerns over the durability of the AI-driven chip boom.
Samsung has achieved the highest quarterly profit in its company history. Nevertheless, the share of the South Korean Group collapsed. Investors are concerned about how persistent the AI hype is.
The Korean giant expects an operating profit of 51 billion euros, multiplied by 19, and a turnover increase of 129% in the 2nd quarter. This is the biggest result in its history.
Samsung flags 19-fold jump in profit but shares slump on jitters AI boom may stall
SEOUL: Samsung Electronics on Tuesday flagged a 19-fold jump in second-quarter operating profit from a year earlier, surpassing its combined earnings over the past three years, but its shares slid as the results failed to ease concerns about the durability of the AI-driven chip boom.The world's largest memory chipmaker estimated April-June operating profit at 89.4 trillion won ($58.44 billion), beating an LSEG SmartEstimate of 87.3 trillion won,…
Samsung Electronics expects its operating profit in the second quarter of 2026 to surge nearly 19-fold, reaching a record high, driven by strong demand for memory chips for artificial intelligence (AI).
Coverage Details
Bias Distribution
- 42% of the sources lean Right
Factuality
To view factuality data please Upgrade to Premium
