Samsung Records 1,800% Surge in Quarterly Profit as AI Chip Demand Soars

Samsung Electronics has reported a dramatic 1,800% increase in its second-quarter operating profit, driven by soaring global demand for memory chips used in artificial intelligence (AI) data centres.

The South Korean technology giant announced on Thursday that its operating profit for the April–June period reached 89.5 trillion won (about $62 billion), compared with the same period last year. Revenue also climbed 130% year-on-year to 171.5 trillion won, while net profit rose nearly 1,300% to 71.6 trillion won.

The strong financial performance was fueled by booming demand for advanced memory chips, particularly high-bandwidth memory (HBM), which powers AI systems, chatbots, and other data-intensive applications.

Despite the record earnings, Samsung and other semiconductor companies have experienced sharp stock market swings in recent days as investors question whether the AI investment boom can be sustained. Samsung's shares fell earlier in the week before recovering about 3% following the earnings announcement.

Samsung said its memory division delivered another record-breaking quarter, supported by strong sales of server products. The company expects demand for AI servers and cloud infrastructure to remain strong throughout the second half of 2026 as businesses continue investing in AI technologies.

Chief Financial Officer Park Soon-cheol said Samsung anticipates a global memory chip shortage to deepen in 2027 and remain tight into 2028 due to rising demand.

The company also confirmed that its first semiconductor manufacturing plant in Taylor, Texas, is on track to begin operations later this year, while construction of a second facility is expected to start before the end of 2026, with mass production planned for 2030.

Samsung recently announced a strategic partnership with US chipmaker Broadcom to supply advanced memory solutions for next-generation AI processors, a deal estimated to be worth more than $200 billion over the next five years.

Analysts say the agreement could help Samsung expand its customer base beyond Nvidia, which has traditionally relied on rival SK hynix for high-bandwidth memory chips.

Industry experts, however, warn that while the semiconductor market is enjoying a strong AI-driven boom, there remains uncertainty over how long the current growth cycle will last.

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