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Samsung Electronics has forecast a 19-fold jump in second-quarter operating profit, extending its record earnings streak as the global artificial intelligence (AI) boom continues to fuel strong demand for memory chips and push prices sharply higher.
The South Korean technology giant on Tuesday estimated an operating profit of 89.4 trillion won (around $58.4 billion) for the April-June quarter, well above the 4.7 trillion won reported a year earlier. The figure also exceeded analysts’ expectations of 87.3 trillion won.
Samsung said revenue for the quarter is expected to rise 129 per cent year-on-year to 171 trillion won, underscoring the strength of the recovery in the semiconductor market after a prolonged downturn.
The earnings mark Samsung’s third consecutive quarter of record operating profit, reflecting how AI-driven demand has transformed the memory chip industry.
AI spending drives memory chip rally
The latest earnings highlight the growing importance of AI infrastructure spending, which has significantly boosted demand not only for advanced chips but also for conventional memory products.
While high-bandwidth memory (HBM) chips — critical for AI accelerators used in data centres — remain in high demand, analysts say the surge in HBM production has also tightened supplies of traditional DRAM and NAND flash memory.
Those chips are widely used in smartphones, personal computers and enterprise servers, allowing manufacturers such as Samsung to benefit from rising prices across their product portfolio.
According to Citi Research, average selling prices for DRAM and NAND increased 44 per cent and 53 per cent quarter-on-quarter, respectively, during the April-June period, reflecting continued supply constraints and strong customer demand.
Long-term contracts strengthen pricing outlook
Industry analysts say customers are increasingly seeking long-term supply agreements to secure access to memory chips, signalling expectations that elevated prices could persist for an extended period.
That trend is expected to benefit Samsung, whose large-scale manufacturing capacity allows it to meet rising demand more effectively than many rivals.
The strong pricing environment has enabled the world’s largest memory chipmaker to generate profits that exceed the combined operating earnings it recorded over the three-year period from 2023 to 2025.
Foundry business remains a weak spot
Despite the strength of its memory business, Samsung is expected to continue facing challenges in its contract chip manufacturing and logic semiconductor operations.
Analysts expect losses at the company’s foundry and system LSI businesses to widen during the quarter, partly because employee bonus expenses are allocated across the semiconductor division.
In May, Samsung reached a wage agreement with workers across its semiconductor business that links performance bonuses to operating profit, increasing labour-related costs during periods of strong earnings.
The company did not provide a breakdown of divisional performance in its preliminary guidance.
Focus shifts to detailed results
Investors will now look to Samsung’s full earnings announcement, scheduled for July 30, for greater clarity on the performance of its individual businesses, particularly its memory, foundry and mobile divisions.
The detailed results are also expected to provide updates on the company’s progress in supplying advanced AI memory chips, an area where competition with rivals has intensified as global investment in AI infrastructure continues to accelerate.
Samsung’s latest guidance reinforces expectations that AI-driven semiconductor demand remains one of the strongest growth engines in the global technology sector, with memory manufacturers continuing to benefit from tight supply and sustained enterprise spending.
