Samsung Electronics – AI Chip Demand Drives Record Second-Quarter Profit Forecast
Samsung Electronics – Samsung Electronics has projected a record operating profit for the second quarter, supported by sustained demand for artificial intelligence-related semiconductors. The South Korean technology company said Tuesday that its April-to-June operating profit is expected to reach 89.4 trillion won, or about US$58.8 billion, sharply higher than the same period last year.
Earnings Estimate Beats Market Expectations
The preliminary figure represents an increase of 1,181 percent from a year earlier and came in above the average market estimate. Data from Yonhap Infomax showed that Samsung’s forecast was about 6.2 percent higher than analyst expectations.
The company’s estimate includes provisions related to employee performance bonuses. Without those costs, operating profit for the quarter is believed to have approached 100 trillion won, underlining the scale of Samsung’s recovery in the semiconductor market.
Semiconductor Bonus Plan Affects Quarterly Figures
Samsung reached a wage agreement in May that included a special performance bonus for workers in its semiconductor operations. The bonus is equal to 10.5 percent of business performance earnings and will be paid in company shares over a period of at least 10 years.
The payment will remain linked to future performance targets in the chip division. Industry estimates place the related provision at around 20 trillion won, which reduced the operating profit figure included in the company’s guidance.
Even with that expense, the projected second-quarter result is more than twice Samsung Electronics’ full-year operating profit of 43.6 trillion won recorded in 2025.
Revenue Also Set for Another Quarterly High
Samsung expects second-quarter revenue to rise 129.3 percent from a year earlier to 171 trillion won. The company did not disclose a net profit estimate in its earnings guidance.
If the final results match the preliminary forecast, Samsung will report its third straight quarter of record revenue and operating profit since the final quarter of last year. The company is scheduled to release detailed earnings later this month.
Samsung did not provide a breakdown by business segment. However, the device solutions division, which includes its semiconductor operations, is expected to have contributed the largest share of the earnings growth.
AI Infrastructure Spending Supports Memory Chip Market
The company’s strong outlook reflects continued investment in artificial intelligence infrastructure worldwide. Expanding data center capacity has increased demand for advanced memory products and contributed to tighter supplies across the broader semiconductor market.
Higher demand has helped keep prices elevated for memory chips, including dynamic random-access memory and NAND flash products. Manufacturers have increasingly directed production resources toward premium products designed for AI systems, reducing available supply of more conventional memory components.
Samsung has benefited from its large memory chip manufacturing base and its expanding lineup of high-value products. The company recently became the first in the industry to begin mass production and commercial shipments of sixth-generation high-bandwidth memory, known as HBM4.
Supply Constraints May Continue Through 2027
Market analysts expect the memory chip shortage to remain in place through at least 2027. That environment could strengthen pricing power for Samsung and other major suppliers, including SK Hynix and Micron Technology.
While some observers have warned that the rapid expansion of the semiconductor sector could eventually slow, Samsung has continued to secure long-term supply arrangements with major technology customers. It has also increased production capacity in anticipation of medium- and long-term demand from AI-focused businesses.
Consumer Electronics Division Faces Softer Conditions
Samsung’s device experience division, which manages consumer electronics and mobile products, is expected to have delivered comparatively weaker results during the quarter. The stronger semiconductor outlook has nevertheless improved expectations for the company’s full-year performance.
The consensus forecast for Samsung’s 2026 operating profit has risen to 37.4 trillion won from 36.6 trillion won, according to Yonhap Infomax. Investors will be watching the company’s detailed report for further information on chip sales, pricing trends and its outlook for the remainder of the year.