Seoul: Samsung Electronics has projected a record-breaking operating profit for the second quarter of 2026, driven by surging global demand for artificial intelligence (AI)-related semiconductors and continued strength in the memory chip market.
The South Korean technology giant estimated its operating profit for the April-June quarter at 89.4 trillion won (approximately $58.8 billion), representing a sharp increase of 1,181 per cent compared to the same period last year.
AI Boom Drives Record Earnings
According to Samsung’s earnings guidance released on Tuesday, the estimated profit exceeded market expectations by 6.2 per cent, reflecting the company’s strong performance in its semiconductor business.
The robust earnings come as technology companies worldwide continue investing heavily in AI infrastructure, increasing demand for advanced memory chips used in AI servers and data centres.
Revenue Also Hits New High
Samsung expects second-quarter revenue to reach 171 trillion won, up 129.3 per cent year-on-year.
If the estimates are confirmed later this month, it will mark the company’s third consecutive quarter of record revenue and operating profit since the fourth quarter of last year.
The company did not disclose its net profit or provide a business-wise earnings breakdown in its preliminary guidance.
Semiconductor Business Leads Growth
Samsung’s Device Solutions division, which includes its semiconductor operations, is believed to have contributed the largest share of the company’s earnings.
The company has benefited from tight global supplies of memory chips, which have kept prices elevated as AI-related demand continues to grow.
Samsung has also strengthened its position by becoming the first company to begin mass production of sixth-generation High Bandwidth Memory (HBM4) chips, which are widely used in advanced AI applications.
Employee Bonus Provision Included
The earnings estimate includes provisions for employee performance bonuses under a wage agreement reached earlier this year.
Samsung has set aside around 20 trillion won for semiconductor performance bonuses, which will be paid partly in company stock over at least 10 years and linked to future business performance.
Excluding these bonus provisions, Samsung’s quarterly operating profit is estimated to have reached around 100 trillion won.
AI Demand Expected to Stay Strong
Industry analysts believe demand for AI chips and high-performance memory products will remain strong through at least 2027 as cloud computing companies and AI developers continue expanding their infrastructure.
The tightening supply of conventional DRAM and NAND flash memory is also expected to support higher pricing, benefiting Samsung and other leading memory chip manufacturers.
While Samsung’s semiconductor business continues to outperform, analysts expect its consumer electronics and mobile divisions to post relatively weaker results during the quarter.
Samsung is scheduled to release its detailed second-quarter earnings report later this month.