Samsung Electronics expects its operating profit to increase by nearly 1,800% in the second quarter, driven by soaring global demand for artificial intelligence (AI) memory chips. According to Forbes, citing the company’s earnings guidance, Samsung forecasts an operating profit of 89.4 trillion won (approximately $58.4 billion) for the April–June period, marking its third consecutive record-breaking quarter.
The company released the earnings forecast ahead of its full financial results scheduled for later this month, following the common practice of major South Korean corporations.
AI chip demand continues to outpace supply
According to Forbes, Samsung’s strong performance has been fueled by sustained demand for AI-related semiconductors, while limited supply continues to support higher chip prices.
The company estimates quarterly sales of approximately 171 trillion won, more than double the level recorded during the same period last year.
Marc Einstein described the projected results as one of Samsung’s strongest quarterly performances ever, approaching the record levels recently reported by Nvidia.
He said the performance reflects the ongoing AI investment boom, which continues to drive unprecedented demand for memory chips.
Data centres remain the main growth driver
Market research firm IDC said demand for semiconductors used in data centres and AI infrastructure has reached levels never before experienced by the memory industry.
According to Bryan Ma, semiconductor supplies are expected to remain constrained through next year as investment in AI data centres continues to accelerate.
Samsung manufactures chips for its own products as well as for companies including Google and Nvidia.
Investors expected even stronger results
Despite the record forecast, Samsung shares fell by nearly 7% on the Korea Exchange, as some investors had anticipated even higher earnings.
Nevertheless, Samsung’s market value has more than doubled since the beginning of the year, while rival SK Hynix has gained more than 200%.
The performance of both companies has helped lift South Korea’s benchmark KOSPI by more than 80% this year.
In June, the South Korean government unveiled plans for at least $880 billion in investments supporting semiconductor manufacturing projects led by Samsung and SK Hynix.
Photo: Samsung
