Samsung’s memory chip unit fuels massive profit surge amid AI boom

Samsung Electronics’ memory‑chip unit has become the engine behind a historic profit surge in the second quarter of 2026. Net profit leapt to 71.62 trillion won, a 1,299.9 percent year‑on‑year increase, while operating income climbed to 89.49 trillion won, up 1,813.8 percent.

Sales for the quarter reached 171.49 trillion won, up 130 percent, with the memory segment delivering a record 127.5 trillion won in revenue and 89.2 trillion won in operating profit. Tight global supply of semiconductors and elevated memory‑chip pricing, driven by robust investment in AI infrastructure, underpinned the performance.

Earnings per share rose to 10,849 won, a 52 percent jump from the previous quarter, positioning Samsung among the highest‑earning technology companies worldwide. Analyst forecasts had predicted a net profit of about 71.21 trillion won, meaning the company’s results were comfortably ahead of expectations.

The surge reflects growing demand for AI‑centric products, especially server‑based AI workloads that require high‑capacity DRAM and NAND flash memory. Samsung expects this demand to stay strong through the remainder of the year, bolstered by continued capital expenditure on AI infrastructure.

In response, Samsung plans to fine‑tune its DRAM and NAND flash portfolios, aligning product development with the evolving needs of AI customers. The firm also aims to restructure its foundry operations to capture higher margins in the second half of the fiscal year.

Capital expenditure for the quarter rose to 16.8 trillion won, driven mainly by a 15.4 trillion won investment in the chip division and 0.7 trillion won allocated to display technology. These figures demonstrate Samsung’s commitment to scaling its semiconductor capabilities and capitalizing on the AI boom.