Samsung expects its Q2 operating profit to reach 89.4 trillion won, a staggering 1810% year-on-year increase.
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Samsung released its Q2 earnings forecast: operating profit increased by over 1800% year-on-year, with single-quarter profit exceeding the total of the previous three years.
BlockBeats reported on July 7th that global semiconductor giant Samsung Electronics released extremely strong preliminary financial results for the second quarter. Data shows that, driven by the powerful wave of artificial intelligence (AI), the world's largest memory chip manufacturer is experiencing its most prosperous profit cycle in history. According to the financial report, Samsung's operating profit in the second quarter surged 1810.2% year-on-year, reaching 89.4 trillion won (approximately US$58 billion). This figure not only far exceeded the market's previous expectation of 84.2 trillion won, but also remarkably surpassed the company's total profit for the three years from 2023 to 2025. At the same time, the company's revenue also increased by 129% year-on-year, reaching 171 trillion won. Following Samsung Electronics' earnings forecast, SanDisk (SNDK.O) and Micron Technology (MU.O) saw their US-listed shares decline in after-hours trading. Samsung's explosive performance directly benefits from the near-"thirsty" orders for high-performance memory chips from AI data centers. Industry giants like Nvidia and OpenAI have repeatedly stated publicly that the shortage of memory chips has become a core bottleneck for current AI development. Because major manufacturers prioritize the production capacity of high-bandwidth memory (HBM), which is designed specifically for AI and offers higher profits, this has conversely squeezed the conventional memory space needed for smartphones, PCs, and enterprise servers. This "capacity squeeze" effect has led to a severe shortage in the global memory market. HSBC data shows that in the second quarter of 2026, the average selling price of DRAM increased by more than 40% compared to the previous quarter, and NAND prices increased by more than 50%; Citi Research gives even higher estimates, at 44% and 53% respectively. Analysts generally believe that this "seller's market" will continue at least until 2027, giving Samsung and its long-time rivals SK Hynix and Micron Technology extremely strong pricing power.
Samsung Electronics' operating profit this year is expected to exceed the cumulative total of the past 40 years, and the second quarter may set a new record for the highest operating profit in the history of global technology companies.
According to Mars Finance, on July 6th, Kim Yong-kwan, head of the semiconductor business's operational strategy at Samsung Electronics, released optimistic signals at a departmental meeting on July 3rd, stating that this year's operating profit will meet market expectations, and adding that "the cumulative profit over the past 40 years of the semiconductor business is less than this year's profit alone." The market currently expects Samsung Electronics' full-year operating profit for 2026 to be approximately 300 trillion won, with a consensus expectation of 84.6 trillion won for the second quarter—if realized, this would surpass Nvidia's record of $53.536 billion in the first quarter of this year, setting a new record for the highest single-quarter operating profit for a global technology company. Kim Yong-kwan also emphasized that the company continues to invest over 40 trillion won in capital expenditure annually and plans to further expand its investment scale to cope with the continued expansion of demand for AI semiconductors. The combined performance of South Korea's two semiconductor giants is equally remarkable. SK Hynix's second-quarter operating profit is expected to be around 64.4 trillion won, bringing the combined total for both companies to approximately 149 trillion won, approaching 150 trillion won. However, some market analysts point out that the storage sector's stock prices have recently shown signs of peaking and declining. Whether they can rise further depends on whether the earnings significantly exceed expectations. The size and duration of long-term supply contracts and the price trend of storage in the second half of the year will be key variables to watch. Furthermore, SK Hynix's ADRs will be listed on July 10th. HSBC has raised its target price from 2.9 million won to 4 million won, believing that the ADR listing will improve accessibility for global investors and could bring a valuation premium of approximately 20%. JPMorgan Chase points out that the second-quarter earnings season will be a watershed moment for reassessing the storage cycle.
Driven by surging demand for AI, Samsung's Q2 operating profit is expected to jump 18 times.
According to Reuters, Samsung Electronics' operating profit for the second quarter of this year is expected to surge approximately 18 times year-on-year, reaching about 86 trillion won (approximately US$56.35 billion), benefiting from the continued tight supply of memory and a sharp rise in chip prices caused by the rapid development of AI. This would be the company's third consecutive quarter of record-high operating profit. Analysts point out that in addition to high-bandwidth memory (HBM), the widespread adoption of complex applications such as agentic AI has also greatly boosted the strong demand for traditional DRAM and NAND products, and the supply shortage in the memory market is expected to continue at least until next year. Despite the strong performance expectations, analysts warn that the timing of the actual second-quarter profit may be slightly lower than market expectations, as Samsung previously agreed to allocate 10.5% of its semiconductor division's operating profit as special bonuses to avoid strikes. Furthermore, the rising cost of memory components is severely squeezing the profit margins of Samsung's mobile business, and industry insiders expect that it may need to further increase the prices of smartphones and other terminal products in the second half of the year to alleviate cost pressures.
Samsung is projected to earn more in one year than in the previous 40 years, with operating profit estimated at approximately $200 billion this year.
According to a post on the X platform by Citrini analyst Jukan, as reported by Odaily Odaily, South Korean media stated that Kim Yong-kwan, President and Head of Business Strategy at Samsung Electronics Device Solutions, said at an all-hands meeting of DS division management on July 3 that this year's operating profit is expected to meet market consensus. South Korean securities firms estimate that Samsung Electronics' operating profit this year will be approximately 300 trillion won, equivalent to about US$200 billion. Kim Yong-kwan reportedly stated that this year's profit alone will exceed the cumulative profits generated by Samsung in its 40 years in the semiconductor business.
Samsung's performance will be a key test for the AI chip market; Q2 operating profit is expected to surge 18 times.
Samsung Electronics, the memory chip maker, is set to release its second-quarter results on Odaily. Analysts predict preliminary operating profit of 84.3 trillion won (approximately $55.1 billion), an 18-fold increase year-over-year and exceeding its full-year profit for 2025. Revenue is expected to grow by 127% to a record 169 trillion won. Since June, chip stocks have experienced several significant corrections due to market concerns about intensified competition, potential overcapacity, and the return on massive AI investments. This further amplifies the importance of Samsung's results, leaving very little room for disappointment given already high market expectations. Roundhill Financial CEO Dave Mazza stated, "Samsung's results come at a time when the market is simultaneously questioning the supply and demand sides of the investment logic in memory chips. If the results are close to market expectations, it will help quell the controversy and benefit Samsung." (Jinshi)
Samsung surpasses Nvidia to become the world's most profitable company
According to Mars Finance, citing Gelongbao, Samsung Electronics disclosed in its preliminary earnings report that its operating profit for the April-June period is expected to reach 89.4 trillion won, approximately US$58.4 billion, setting a new quarterly record and representing a 56% increase compared to the previous quarter. This exceeds analysts' average expectation of 84.2 trillion won. During the same period, Samsung Electronics' revenue is expected to reach 171 trillion won, exceeding market expectations of 169.2 trillion won and representing a year-on-year increase of approximately 129%. The company plans to release its full financial report on July 30, at which time it will disclose net profit and data by business segment. The report states that Samsung Electronics' quarterly operating profit has surpassed Nvidia, making it the company with the highest quarterly operating profit globally. The chart shows that among major technology companies, Samsung Electronics ranked first with $58.4 billion in quarterly operating profit, Nvidia ranked second with $53.5 billion, Alphabet (Google) ranked third with $39.7 billion, Microsoft ranked fourth with $38.4 billion, and Apple ranked fifth with $35.9 billion.