Samsung Electronics second-quarter operating profit beats estimates on soaring AI chip demand
Samsung Electronics reported record-breaking second-quarter operating profits driven by high demand for AI-related memory chips. The company is scaling up production of HBM4 memory to support advanced AI processors like those from Nvidia.
Why it matters
Samsung's performance serves as a key indicator of the ongoing global AI infrastructure boom and the critical role of memory hardware in the tech sector.
Samsung Electronics extended its record run with second-quarter operating profit topping analysts' estimates, as robust artificial intelligence demand continues to drive growth in its memory chip business.
Here are Samsung's first-quarter results compared with LSEG SmartEstimates, which are weighted toward forecasts from analysts who are more consistently accurate:
Samsung shares reversed course to close 0.72% lower on Thursday.
The South Korean tech giant posted a record quarterly operating profit, up 1,814% year on year, while revenue rose 130%. Profit jumped over 56% from the previous quarter, while revenue climbed more than 28%.
Both operating profit and revenue were in line with Samsung's forecast released earlier this month.
The company cited AI server demand as the key driver for its record-breaking memory earnings, which helped its achieve all-time high DRAM and NAND sales. Those chips are used in a wide range of electronic devices, from smartphones to automotive systems and servers.
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