South Korean tech giant Samsung Electronics reported a massive 19-fold increase in second-quarter operating profit Thursday, driven by intense demand for memory chips used in AI data centers.
In a press release, Samsung attributed the achievement to “technology leadership and swift response to market changes”.
The company reported an operating profit of 89.5 trillion won for the quarter ending June 30, representing an 1,814% increase year over year, with a 56% growth from the previous quarter.
Revenue reached 171.5 trillion won, up 130% year over year and 28% quarter over quarter, setting a record. Earnings per share increased by 52% to 10,849 won.
The result beat analyst expectations for operating profit of 88.13 trillion won, while revenue came in just below the expected 172.65 trillion won.
Samsung’s Device Solutions division, which manages its memory chip operations, was the standout performer this quarter. The division reported revenue of 127.5 trillion won and an operating profit of 89.2 trillion won, according to the company. It attributed the strong performance mainly to demand for AI servers, with server products achieving a record-high share of the sales mix.
Samsung also announced it increased HBM4 production volumes and delivered the industry’s first HBM4E samples to major customers; HBM4 is its sixth-generation high-bandwidth memory product designed for advanced AI processors.
Samsung’s consumer electronics division experienced a minor operating loss, and the MX and Networks units reported an operating loss of 700 billion won for the quarter.
Samsung shares fell sharply, almost 14%, following the announcement.
By CEO NA Editorial Staff
