Samsung Posts Record Quarter as Memory Prices Surge

Overview

• Samsung reported preliminary second-quarter results on Tuesday showing operating profit of about 89.4 trillion won and revenue of 171 trillion won, roughly 19 times and 129% higher than a year earlier respectively.
• Analysts and executives attribute the jump to strong AI-related demand and a persistent shortage of high-performance memory chips such as HBM, DRAM and NAND that pushed average selling prices sharply higher in April–June.
• Markets reacted nervously despite the beat, with Samsung shares tumbling and trading briefly triggering a circuit breaker in Seoul as investors questioned whether current margins are sustainable.
• The preliminary figures likely include large provisions for extraordinary employee bonuses estimated at 18–20 trillion won and the company will publish full audited quarterly accounts and division-level details later this month.
• South Korea and industry leaders have announced massive capacity plans, including Samsung’s more-than-US$70 billion 2026 investment and an 800 trillion won public-private program to build four new fabs, a move that could ease shortages but raises risks of future oversupply and regulatory scrutiny.