Samsung Electronics announced record financial results for the second quarter on Thursday, driven almost entirely by surging demand for memory chips used in artificial intelligence data centers. The company reported an operating profit of 89.5 trillion Korean won, with consolidated revenue jumping 28% quarter-over-quarter to 171.5 trillion won. Earnings per share rose 52% sequentially to 10,849 won.
The semiconductor division, which includes memory and logic chips, generated 89.2 trillion won in operating profit, essentially accounting for all of Samsung's earnings. The mobile and networks businesses, by contrast, posted an operating loss of 700 billion won due to rising component costs, while television and appliance operations also recorded a small loss.
The blowout numbers reflect the wider boom in AI infrastructure spending. SK hynix, the market leader in high-bandwidth memory (HBM), reported 79.3 trillion won in revenue and 60.5 trillion won in operating profit—an operating margin of approximately 76%—with revenue up 257% year-over-year. Micron Technology delivered $41.46 billion in revenue for its fiscal third quarter and GAAP net income of $28.24 billion, boosted by multi-year supply contracts with hyperscale customers.
Samsung highlighted its progress in HBM4, the next-generation memory for AI accelerators. Mass production began in February, and the company has already shipped samples of its faster HBM4E variant to key clients. Management expects continued investment in AI infrastructure and wider adoption of agentic AI to accelerate demand for HBM, server DRAM, and enterprise SSDs in the second half of the year.
Market analysts offered a range of price targets for Samsung's stock following the earnings. KB Securities maintained a 600,000 won target, Mirae Asset Securities cut its target to 370,000 won citing sector volatility, and Citi held a bullish 530,000 won target. Samsung shares rose over 5% on the day, with intraday gains reaching 8%.
The strong results, however, come with risks. Memory supply is expected to remain tight as manufacturers allocate capacity to AI chips, potentially squeezing supply for smartphones and PCs. TrendForce forecasts DRAM contract prices could rise 58%–63% in the third quarter and NAND flash prices 70%–75%. Longer-term, Chinese competition from CXMT and broader memory-cycle volatility could pressure valuations for Samsung and its peers.
