Samsung Profit Jumps 1,800% as AI Chip Demand Powers Record Quarter

Samsung Electronics posted a report second-quarter working revenue of 89.5 trillion gained ($62 billion), up 1,814% yr over yr, as synthetic intelligence (AI) demand for reminiscence chips pushed gross sales to an all-time high.

Revenue climbed 28% quarter over quarter to 171.5 trillion gained, a recent firm report. It narrowly missed analyst forecasts, even as revenue beat expectations.

AI Server Demand Drives the Memory Boom

Samsung’s Device Solutions division, residence to its reminiscence chip enterprise, posted a 56% quarterly gross sales bounce. The unit’s reminiscence arm set information for each income and working revenue.

Samsung prioritized server merchandise to fulfill AI capability wants. Server gross sales reached a report share of its chip combine as a end result.

The firm additionally scaled up manufacturing of HBM4, a high-bandwidth reminiscence chip utilized in AI processors. It shipped the business’s first samples of HBM4E, the next-generation model of that chip, to main prospects.

Samsung expects that momentum to proceed. It forecasts accelerating demand for server reminiscence and high-bandwidth chips by way of the second half of 2026, as AI infrastructure spending broadens additional.

The forecast follows Samsung’s current AI chip supply deals with Nvidia and Broadcom.

Record Results Follow a Sharp Selloff

The earnings beat got here a day after a pointy selloff. Samsung shares fell greater than 12% on Wednesday, and rival SK Hynix tumbled almost 20%. Traders have been unwinding AI-related bets over fears that revenue forecasts had run too far forward of actuality.

SK Hynix additionally reported a report revenue on Wednesday, but it surely missed analyst estimates. Both chipmakers stay central to the AI memory stock rally that has outlined South Korean equities in 2026, alongside the broader KOSPI’s AI-driven rebound.

MS Hwang, an analyst at Counterpoint, said that Samsung’s reminiscence power is spilling into its different enterprise items.

“In brief, Samsung is leveraging its sturdy place in reminiscence to aggressively seize share throughout most of its enterprise items.”

Analysts broadly count on the reminiscence growth to persist as knowledge middle operators maintain increasing AI capability. This week’s swings recommend some buyers are questioning how lengthy the streak can final.

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