Samsung Projects 19-Fold Jump in Q2 Profit Amid Strong AI Memory Demand

Samsung Electronics on July 7  issued its earnings guidance for the second quarter of 2026, projecting another record quarter as strong demand for AI memory chips continued to drive its semiconductor business.

The South Korean technology giant expects consolidated revenue of approximately 171 trillion won and an operating profit of around 89.4 trillion won ($58.4 billion) for the April–June quarter. The projected operating profit compares with 4.7 trillion won in the year-ago quarter and 57.2 trillion won in the previous quarter.

The projected operating profit represents a 19-fold increase from the same period last year, while revenue is expected to more than double year over year. 

Samsung’s projected operating profit of 89.4 trillion won (about $58.4 billion) is roughly in line with and slightly above NVIDIA’s most recently reported quarterly operating income of about $53.5 billion. However, a direct comparison of net profit is not yet possible, as Samsung has yet to disclose its net profit for the quarter. NVIDIA reported quarterly net income of $58.3 billion.

The preliminary figures exceeded analyst expectations, reflecting continued strength in the memory chip market as cloud providers and technology companies expanded AI infrastructure. Higher prices for DRAM and NAND flash memory, particularly high-bandwidth memory (HBM) used in AI accelerators, continued to support Samsung’s earnings growth. 

Tight supply of conventional memory chips, as manufacturers shifted production capacity towards HBM, also contributed to higher prices during the quarter.

Despite the strong earnings guidance, Samsung’s stock dropped as much as 7.9% in early trading. Shares of SK Hynix also fell up to 7.3%, contributing to a nearly 6% decline in the KOSPI index.

Analysts pointed to concerns over whether hyperscale cloud companies would sustain their pace of AI infrastructure investments and whether future returns would justify the industry’s aggressive capital spending plans.

According to Reuters, some analysts also said Samsung’s operating profit could have crossed KRW 100 trillion had the company not set aside substantial provisions for employee bonuses in its semiconductor division. 

Samsung is expected to release its full second-quarter financial results later this month, when it will disclose net profit and provide additional details on the quarter's performance.

The broader AI memory sector remains in focus, with rival SK Hynix set to begin trading on the Nasdaq on July 10 through a roughly $28 billion American depositary share (ADS) listing—one of the largest foreign listings in US history.