Samsung Profits Surge 1,800% as AI Memory Chip Demand Drives Record ₩89.4 Trillion Quarterly Operating Profit and ₩171 Trillion Sales

Samsung posted a record second-quarter operating profit of 89.4 trillion won, up 1,810.3% year-over-year. The company reported revenue of 171 trillion won, compared with 133.9 trillion won last quarter.  AI-driven memory chip demand powered this surge. The results mark Samsung’s third consecutive record quarter this year.

Samsung Posts Record Profit on AI Memory Demand

Samsung reported preliminary operating profit of 89.4 trillion won for April through June 2026. That beat the FnGuide analyst consensus of 84.4 trillion won by a wide margin. Revenue reached 171 trillion won, reflecting strong momentum across Samsung’s memory chip business.

This marks an 1,810.3% jump from 4.7 trillion won in the same quarter last year.

What Drove the Price Surge

Citi Research linked this surge to sharp price increases across memory products:

• DRAM prices rose 44% quarter-over-quarter
• NAND flash prices surged 53% over the same period
• AI server demand drove sustained memory chip shortages
• Samsung’s full divisional earnings breakdown arrives on July 30, 2026

Bonus Provisions Mask an Even Larger Profit Figure

Samsung set aside roughly 25 trillion won this quarter for employee performance bonuses. This wage arrangement, signed in May 2026, ties bonus payouts directly to quarterly earnings results. Without this provision, operating profit would have surpassed 100 trillion won for the first time in company history.

The Real Numbers Behind the Bonus Deduction

Excluding these bonus costs, the underlying picture looks even stronger:

• Estimated adjusted operating profit reaches approximately 106.5 trillion won
• That figure exceeds Samsung’s combined operating profit from 2023 through 2025
• The exact bonus allocation formula remains undisclosed pending the full quarterly filing

Samsung Electronics (005930.KS) reported record Q2 preliminary operating profit of 89.4 trillion won ($58.4 billion), a 19-fold jump year-on-year.

The figure surpasses NVIDIA's Q1 operating profit of $53.5 billion and stands as the highest quarterly operating profit ever…

— Finance Spot (@financespotnews) July 7, 2026

HBM4 Shipments Begin Contributing to Revenue

Samsung began commercial shipments of HBM4 memory chips during the second quarter of 2026. This marks the first period where the newest AI memory generation contributes meaningfully to revenue. Analysts view HBM4 volume and pricing as a key driver for earnings through the remainder of 2026.

Analyst Outlook on Memory Pricing

Meritz Securities expects memory chip prices to keep climbing through year-end. Key points from the firm’s forecast include:

• Continued earnings momentum extending into 2026 and beyond
• Global memory supply expected to lag AI demand until late 2029
• HBM4 pricing seen as the primary swing factor for future quarters

Samsung Group Commits ₩140 Trillion to Future Capacity

Samsung Group separately pledged 140 trillion won, over $100 billion, to expand AI chip, HBM, and OLED display manufacturing. This investment targets facilities across South Korea’s Chungcheong region through 2040. The commitment signals Samsung is backing this earnings surge with long-term capacity, not just short-term price gains.

This expansion plan positions Samsung to meet sustained AI infrastructure demand well beyond the current chip cycle. Combined with HBM4’s revenue contribution, this investment suggests Samsung expects the current memory upcycle to extend for years rather than months.

Stock Reaction Reflects Profit-Taking After Extended Rally

Despite record earnings, Samsung Electronics shares fell as much as 9.75% during trading following the announcement. Samsung stock had already climbed more than 155% year-to-date before this earnings release. Analysts attribute the decline to profit-taking after this extended rally, rather than concerns about underlying business performance.

Wider Market Impact

The selloff extended beyond Samsung itself:

• The KOSPI index fell as much as 4.34% the same day
• SK Hynix felt pressure from the same profit-taking wave
• Micron Technology and Broadcom also saw declines in sympathy

Final Thoughts

Samsung’s record 89.4 trillion won operating profit confirms AI memory demand remains a powerful earnings driver. The 140 trillion won capacity commitment signals confidence this upcycle extends well into the next decade. Investors should watch the July 30 divisional breakdown for clearer visibility into which segments drove this historic quarter.

Disclaimer:

The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice