AI chip demand lifts Samsung operating profit 19.1x

2026-07-07

AI demand drives record profit

Samsung Electronics said on the 7th its companywide operating profit for April-June 2026 rose 19.1 times from a year earlier to 89.4 trillion won, or about 9 trillion yen. Revenue climbed 2.3 times to 171 trillion won, with both figures marking quarterly records. It was the third straight quarter in which both revenue and operating profit hit all-time highs. Operating profit also beat market expectations.

Semiconductors lead the way

Operating margin was 52.3%, up 46 percentage points from 6.3% a year earlier and a quarterly record. The semiconductor division, which accounts for 60% of companywide revenue, drove earnings as memory supply and demand tightened for AI data centers, where investment is strong.

In particular, sales of high-bandwidth memory, or HBM, which stacks DRAM used for short-term memory in AI computing, grew and prices have continued to rise on the back of tight supply. According to Taiwanese research firm TrendForce, DRAM market prices in April-June 2026 rose by around 55% from January-March of the same year, while NAND flash memory for long-term storage climbed 55% to 60%.

In a preliminary forecast as of the 3rd compiled by Korean financial site FnGuide from estimates by 24 securities firms, revenue was seen at about 173 trillion won and operating profit at about 85 trillion won. Operating profit came in above market expectations as memory prices rose more than expected.

Meanwhile, businesses other than memory semiconductors appear to have underperformed. The smartphone division, a core business alongside semiconductors, saw profitability worsen as component prices rose, while the display and home appliance divisions also struggled to grow sales amid competition from Chinese makers. Net profit for April-June and earnings by business segment will be disclosed in the final results due at the end of July.

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