Samsung Electronics announced a record second-quarter operating profit of approximately 89.2 to 89.5 trillion Korean won (about US$61-62 billion), marking an increase of more than 250 times compared to the same quarter last year [1, 2, 3, 4, 5, 6, 7]. Consolidated revenue for Q2 reached about 171.5 trillion won, more than double the previous year's figure [1, 3, 4, 7].
The surge was largely driven by Samsung’s semiconductor division, where memory chips for AI data servers and infrastructure fueled demand. The semiconductor operating profit alone matched the total company profit at around 89.2 trillion won, rising over 250-fold year-on-year [1, 2, 3, 4, 5, 6, 7]. Samsung scaled shipments of high-bandwidth memory (HBM4 and HBM4E) products to major AI customers, boosting sales further [3].
Kim Jaejune, Samsung’s Executive Vice-President of Memory Business, said, "The supply shortage in 2027 is expected to worsen compared to this year, and it is expected to continue in 2028" [6]. Samsung’s management remained optimistic, with Ryu Young-ho, an analyst at NH Investment & Securities, noting the earnings call commentary was "better than expected, and it was one of the more reassuring calls we’ve heard in quite some time" [6].
Despite the semiconductor boom, Samsung’s mobile division posted a loss of about 700 billion won, partly due to higher chip prices affecting competitiveness [4, 5, 6]. Analyst Josh Gilbert of eToro said, "The chips enriching one side of Samsung are now hurting the other, leaving the group more exposed than ever to memory pricing and the durability of hyperscaler demand" [5].
Samsung has signed long-term supply deals with leading global data center firms covering 60-70% of its future memory production capacity, reflecting confidence in sustained demand [6]. The company expects chip demand to remain strong in the second half of 2026 due to AI server needs and broad AI adoption, with supply shortages persisting into 2027 and 2028 [4, 5, 6, 7].
SK Hynix also reported record Q2 operating profits driven by AI chip demand but fell short of analyst estimates [2, 3, 4]. Samsung and SK Hynix shares rallied initially after earnings releases but later declined from June peaks amid investor concerns on AI spending sustainability and competition from China; however, they saw partial recovery after the Amazon earnings report [2, 4, 5, 8, 9].
Samsung’s net income for Q2 reached about 71.3 trillion won, a significant improvement compared to last year [2, 7]. Meanwhile, LG Electronics reported a strong Q2 as well, with operating profit rising 147% year-on-year, boosted by home appliances and electric vehicle parts [10].
Samsung’s next key event will be monitoring its second-half chip sales and supply conditions as AI-driven demand continues to shape its outlook through 2027 and beyond.
