Samsung Electronics said on Tuesday it expects a record operating profit for the second quarter, reflecting a major boost from AI-driven demand for memory chips. For the three months to June 30, the company forecast operating profit of 89.4 trillion won ($58.43 billion), a figure that represents more than a 19-fold increase compared with 4.68 trillion won a year earlier and exceeds Bloomberg's estimate of 84.2 trillion won.
Revenue for the quarter is projected to rise to 171 trillion won, more than double the 74.57 trillion won reported in the same period last year, Samsung said in a statement. The company described the result as its largest-ever quarterly operating profit and the third straight quarter of record earnings.
AI demand and memory pricing
Samsung attributed the exceptional performance primarily to demand from the artificial intelligence sector. Large technology companies continued to invest heavily in expanding computing infrastructure, which spurred strong uptake of high-bandwidth memory and conventional DRAM. That increase in demand tightened supplies and pushed memory prices higher across product categories.
Samsung is a major supplier to NVIDIA and has also deployed NVIDIA's AI GPUs in building its own data centers. The company said its core memory business is expected to be the principal driver of profitability for the quarter.
Mixed outcomes across Samsung's businesses
While memory is expected to underpin the gains, Samsung indicated its foundry operations could record potential losses due to elevated bonus expenses. The company reached a significant payout agreement with workers across its chips division in May, resulting in higher labor-related costs that could weigh on foundry results.
Samsung also cautioned that its smartphone and broader electronics businesses may face headwinds related to rising prices. The company said higher memory costs have increased device prices and are expected to have dampened consumer demand.
Samsung plans to release its full second-quarter financial results on July 30.
Additional context
This guidance highlights how demand for AI compute is reshaping revenue mixes and profitability within major chipmakers, disproportionately benefiting memory suppliers while creating uneven outcomes across manufacturing and consumer-facing divisions.