Samsung Electronics has reported a record second-quarter operating profit, beating analysts’ expectations as surging global demand for artificial intelligence (AI) infrastructure continued to fuel growth in its memory chip business.
The South Korean technology giant posted operating profit of 89.5 trillion won ($118.7 billion) for the quarter, ahead of the 88.13 trillion won forecast by analysts surveyed by LSEG SmartEstimates. Revenue came in at 171.5 trillion won, slightly below expectations of 172.65 trillion won.
Despite the stronger-than-expected earnings, Samsung shares reversed earlier gains to close 0.72% lower on Thursday.
The company’s operating profit surged 1,814% year-on-year and climbed more than 56% from the previous quarter, while revenue increased 130% from a year earlier and rose more than 28% quarter-on-quarter. Both figures were in line with Samsung’s preliminary guidance released earlier this month.
Samsung attributed the record performance to booming demand for AI servers, which drove unprecedented sales of its DRAM and NAND memory chips used in smartphones, automotive systems, servers and other electronic devices.
The company also increased capital expenditure in its memory business during the quarter, expanding investment in its new fabrication facility in Pyeongtaek and other infrastructure projects to meet rising AI demand while continuing to invest in advanced research and development.
Samsung said it had ramped up sales of its sixth-generation High Bandwidth Memory (HBM4) chips and shipped the industry’s first HBM4E samples to major customers. The chips are designed to power next-generation AI processors, including Nvidia’s Vera Rubin platform.
Looking ahead, Samsung said demand for AI-related memory products continues to accelerate.
The company said it is witnessing “exponential growth in demand for general-purpose computing alongside AI” and is closely monitoring demand across HBM and server DRAM while maintaining an optimal product mix to support long-term AI growth.
Samsung expects industry-wide supply constraints to continue into next year and said it would manage its HBM and DRAM businesses in a balanced manner to achieve an HBM market share comparable to its conventional DRAM business.
For the second half of the year, the company forecast robust demand for memory products driven by continued investment in AI infrastructure and broader adoption of agentic AI technologies.
Josh Gilbert, Lead Analyst for APAC at eToro, said the AI investment cycle continues to favour semiconductor suppliers.
“The AI infrastructure buildout is still paying its suppliers handsomely, and Samsung expects more to come, pointing to strong memory demand in the second half as agentic AI adds another layer of appetite for its chips.”
Samsung also expects demand for server DRAM, enterprise solid-state drives (eSSDs) and HBM products to accelerate further.
The company warned that supply constraints could tighten even more by 2027 as rapidly expanding AI token generation drives exponential demand over the medium to long term.
Samsung said an increasing number of customers are pursuing multi-year supply agreements to secure AI infrastructure capacity, giving the company greater visibility into future demand and more flexibility in planning investments.
It disclosed that agreements have already been finalised with its top five global data centre customers, while negotiations are in their final stages with five additional major clients seeking AI-related memory solutions.
Addressing speculation over a possible US stock market listing, Samsung said it is “not currently reviewing an ADR issuance,” despite recent media reports.
The company added, however, that “from a mid to long-term shareholder value perspective, an ADR remains one of several possible options that could be open for consideration.”
Last week, Samsung unveiled its latest range of foldable smartphones and announced an expanded strategic partnership with Broadcom covering both memory and foundry technologies.
While the semiconductor division continued to power earnings, Samsung’s mobile and networks business posted a 700 billion won loss, reflecting mounting cost pressures.
Gilbert noted that the results also underscore Samsung’s growing reliance on its memory business.
“The strength of the memory business is remarkable, but so is Samsung’s dependence on it,” Gilbert said, noting that the mobile and networks division was squeezed by the same component price increases that are boosting semiconductor profits.
Samsung said the decline in the mobile business was driven by elevated component costs, although revenue increased from a year earlier on strong sales of the Galaxy S26 series and continued momentum for the Galaxy A lineup.
The company also highlighted robotics as another long-term growth pillar, revealing that it has established a dedicated robotics division under the direct supervision of its Chief Executive Officer.
Samsung said it views robotics, alongside artificial intelligence, as a strategic growth area and is exploring partnerships with startups as well as potential mergers and acquisitions to accelerate its expansion.
The earnings report came a day after domestic rival SK Hynix also announced record second-quarter profit, although its results fell short of analysts’ expectations.
Boluwatife Enome
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