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Samsung Electronics reported stronger-than-expected second-quarter earnings, driven by soaring demand for artificial intelligence (AI) memory chips as global investment in AI infrastructure continued to accelerate.
For the three months ended June 30, the South Korean technology giant posted net profit of 71.27 trillion won ($49.2 billion), exceeding Bloomberg's estimate of 68.36 trillion won. Operating profit climbed nearly 19-fold from a year earlier to 89.4 trillion won, matching the company's earlier guidance, while revenue reached a record 171.5 trillion won.
Samsung, the world's largest memory chip manufacturer, had already signaled a sharp increase in quarterly earnings earlier this month, marking its third consecutive quarter of record profitability. The company credited the strong performance to robust demand for advanced memory products used in AI servers and data centers.
The company's memory chip business offset weaker results from its smartphone and consumer electronics divisions, where rising component costs and soft consumer spending continued to pressure margins.
Looking ahead, Samsung expects AI-driven demand to remain strong throughout the second half of 2026. The company said continued spending on AI infrastructure and the growing adoption of agentic AI technologies will support robust demand for server memory products.
Samsung also expects the global memory market to remain undersupplied despite slower demand for PCs and consumer electronics. It warned that supply constraints are likely to persist even as manufacturers increase production capacity.
To capitalize on the trend, Samsung plans to prioritize higher-margin products, including high-bandwidth memory (HBM) chips that are essential for AI applications. The company also intends to expand production at its foundry business to strengthen its semiconductor manufacturing capabilities.
Although Samsung's AI-driven growth has significantly boosted its valuation in recent quarters, investor enthusiasm has cooled in recent weeks amid concerns that AI-related stock valuations have become stretched and that the rapid pace of AI demand growth may eventually moderate. Even so, Samsung remains optimistic that continued AI investment will support long-term growth across its semiconductor business.
