Samsung Electronics second-quarter operating profit beats estimates on soaring AI chip demand - CNBC

What the report says

CNBC reported that Samsung Electronics posted a record second-quarter operating profit that exceeded analyst expectations, helped by strong demand for artificial intelligence-related memory chips. The South Korean company reported revenue of 171.5 trillion won, or about $118.7 billion, compared with an LSEG SmartEstimate of 172.65 trillion won. Operating profit reached 89.5 trillion won, above the 88.13 trillion won estimate. Samsung shares ended Thursday down 0.72%, according to the report.

The results were broadly consistent with Samsung’s earlier guidance, CNBC said. Operating profit rose 1,814% from a year earlier, while revenue increased 130%. Compared with the previous quarter, profit was up more than 56% and revenue rose more than 28%. Samsung pointed to AI server demand as the main factor behind record memory earnings and all-time highs for DRAM and NAND sales.

Samsung said it increased memory capital spending from the prior quarter, including investment in a new fabrication plant in Pyeongtaek and other infrastructure, while continuing advanced research and development. The company also said it had expanded HBM4 sales and shipped HBM4E samples to major customers. High-bandwidth memory is a key component for advanced AI processors, and Samsung said it is monitoring demand across HBM and server DRAM while managing its product mix.

Looking ahead, CNBC reported that Samsung expects memory demand to remain strong in the second half, supported by server needs and AI infrastructure spending. The company also said supply constraints could tighten further in 2027 and noted growing customer interest in multi-year supply agreements. Separately, Samsung said it is not currently reviewing an ADR issuance, while leaving it as a possible longer-term option.