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Samsung Posts Record Q2 Profit as Memory Chip Sales Soar

The surge in demand for high-bandwidth memory drove unusually large chip profits, triggering investor concern over heavy capex, rising China competition, plus a rare operating loss in the mobile unit.

Overview

  • Samsung reported on Thursday a record second-quarter operating income of about 89.49–89.5 trillion won, revenue near 171.49–171.5 trillion won, and net profit of 71.62 trillion won driven largely by its semiconductor business.
  • The company said mass production and shipments of sixth-generation HBM (HBM4) and higher-value DRAM and NAND products lifted prices and shipments that produced nearly all the quarter’s profits.
  • Samsung increased capital spending sharply to 16.8 trillion won in Q2 with 15.4 trillion won directed to the chip division to expand capacity for AI-related server memory.
  • The mobile, TV and home-appliance division reported an operating loss of about 800 billion won, its first quarterly loss, which company statements tied to rising component costs that squeezed phone margins.
  • Investors sent Samsung and peer chip stocks lower this week because heavy, multi-year chip investments and reports of faster Chinese production raise doubt about how long the AI-driven memory cycle will sustain high returns.