SEOUL: Samsung Electronics reported a more than 1,800 percent year-on-year increase in second-quarter operating profit on Thursday, fueled by surging demand for memory chips used in artificial intelligence (AI) data centers.
The South Korean technology giant posted an operating profit of 89.5 trillion won ($62 billion) for the April–June quarter, while revenue rose 130 percent to 171.5 trillion won. Net profit also climbed nearly 1,300 percent from a year earlier to 71.6 trillion won.
The results met market expectations, according to South Korea’s Yonhap News Agency.
Samsung and other major memory chip manufacturers have enjoyed record earnings this year as AI-related demand continues to drive sales. However, investor sentiment has become increasingly volatile amid concerns that expectations surrounding the AI boom may be overstated.
On Wednesday, Samsung shares fell more than 12 percent during a broader sell-off in South Korean technology stocks, while rival SK hynix dropped nearly 20 percent after posting earnings that, although significantly higher than last year, fell short of market expectations.
Samsung said its memory business delivered another record-breaking quarter, supported primarily by strong demand for server products. Shares rebounded by about three percent in early Thursday trading.
The company expects robust demand for AI servers in the second half of 2026, driven by continued infrastructure investment and wider adoption of agentic AI technologies. Chief Financial Officer Park Soon-cheol said Samsung expects the global memory chip shortage to deepen in 2027 and remain tight through 2028.
Samsung also said its first semiconductor plant in Taylor, Texas, remains on track to begin operations later this year. Construction of a second facility is expected to begin later in 2026, with mass production targeted for 2030.
The company recently announced a strategic collaboration with U.S. chipmaker Broadcom to supply advanced memory solutions, including high-bandwidth memory (HBM), for next-generation AI accelerators. The partnership is estimated to be worth more than $200 billion over the next five years.
Analysts say the agreement could help Samsung diversify its AI customer base beyond Nvidia, which has traditionally sourced HBM chips from SK hynix.
Meanwhile, South Korea is pressing ahead with plans for Samsung and SK hynix to invest a combined 800 trillion won in four advanced semiconductor fabrication plants in Gwangju, reinforcing the country’s long-term strategy to strengthen its position in the global semiconductor industry.
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