Samsung Electronics, the world's largest memory chipmaker, announced a record-breaking second-quarter operating profit of 89.49 trillion won ($62 billion), marking a 1,813.8% increase year-on-year. This significant rise is attributed to the booming demand for AI-driven memory chips. Revenue also jumped 130% to 171.49 trillion won, while net profit soared 1,299.9% to 71.62 trillion won.
Despite the impressive earnings, Samsung and other memory chipmakers have experienced volatile share prices as investors question the sustainability of the AI boom. Samsung's stock fell more than 12% following the earnings announcement, while its rival SK hynix saw a nearly 20% decline.
Samsung's memory business achieved another record quarter by focusing on server products and benefiting from industry-wide price increases. The company expects robust demand in the second half, driven by continued AI infrastructure spending and the adoption of agentic AI systems.
Analysts predict the boom will continue as North American tech giants invest in AI data centers requiring cutting-edge chips. Samsung's high-bandwidth memory (HBM) business is also positively impacting its foundry operations. The company recently announced a strategic collaboration with Broadcom for next-generation AI accelerators, estimated to exceed $200 billion over five years.
The semiconductor boom has significantly boosted South Korea's tax revenue, prompting President Lee Jae Myung to invest in AI and semiconductor industries. Samsung and SK hynix plan to invest 800 trillion won in building advanced semiconductor fabs in Gwangju, although analysts warn of potential risks if the semiconductor supercycle ends before completion.
