Samsung Electronics expects its second-quarter operating profit to surge by more than 1,800% from a year earlier, driven by booming global demand for memory chips used in artificial intelligence (AI) infrastructure. According to the company’s preliminary earnings guidance, reported by Reuters, Samsung estimates operating profit of approximately 89.4 trillion won ($58.4 billion) for the April–June 2026 quarter, compared with 4.7 trillion won in the same period last year. Revenue is projected to reach 171 trillion won, up 129% year-on-year, exceeding market expectations.
The South Korean technology giant said the sharp earnings growth reflects sustained demand for high-performance memory chips used in AI data centres, where supply shortages have continued to support higher prices. Analysts noted that prices for DRAM and NAND flash memory have climbed significantly over the past year as global technology companies accelerate investment in AI infrastructure. Despite setting aside substantial performance bonuses for semiconductor employees, Samsung’s semiconductor division remained the primary driver of the company’s record profitability.
While the earnings forecast surpassed analysts’ estimates, Samsung’s shares fell sharply after the announcement as investors questioned how long the current AI investment cycle can be sustained. Market participants also expressed concerns about slowing revenue growth and the possibility that spending on AI infrastructure by major U.S. technology companies could moderate over time. Nevertheless, Samsung reaffirmed its long-term commitment to expanding semiconductor production, with plans to invest 2,100 trillion won through 2040, subject to market conditions.
For the global semiconductor industry, Samsung’s record earnings underscore the transformative impact of artificial intelligence on chip demand and profitability. Analysts say the company remains one of the biggest beneficiaries of the AI revolution, although maintaining current profit levels will depend on continued investment in AI infrastructure, resilient memory pricing, and the successful execution of Samsung’s long-term semiconductor expansion strategy.
