Samsung hits record $62B profit on AI chip demand but warns memory shortage worsens through 2028
26 Sources
[1]
Samsung Expects the Chip Shortage to Get Worse Before It Gets Better - CNET
Dashia is the consumer insights editor for CNET.... Read full bio Don't expect lower prices on tech anytime soon. That's the takeaway from what Samsung execs said on the company's second-quarter earnings call Thursday. The company expects the memory chip shortage behind rising tech prices to
[2]
Samsung warns memory crunch will last through 2028 as profit rises 19-fold
Samsung Electronics is warning that the current memory supply crunch will deepen next year and persist through 2028, a shortage that keeps padding its own record profits at the expense of enterprise customers and consumers. The Korean conglomerate said agentic AI has added to demand already
[3]
Samsung Q2 profit jumps 19-fold as AI chip demand offsets mobile loss
SEOUL, July 30 (Reuters) - Samsung Electronics (005930.KS), opens new tab said on Thursday its operating profit jumped 19-fold to a record in the second quarter, as solid demand for AI chips offset weaker earnings at its mobile business. The world's top memory chipmaker reported operating profit
[4]
Samsung's mobile division posts first-ever loss due to soaring memory prices - Engadget
How can one of the world's largest smartphone companies lose money by selling more smartphones than ever? I think we all know the answer: soaring memory prices caused by the AI boom. Samsung just announced that despite "solid" smartphone sales and growing revenue, its DX division (which includes
[5]
Samsung reports record profit as South Korean chip giants benefit from global AI boom
SEOUL, South Korea (AP) -- South Korean technology giant Samsung Electronics on Thursday reported a record operating profit of 89.5 trillion won ($62 billion) for the April-June period, a day after crosstown rival SK Hynix also reported record earnings, as the world's two largest memory chipmakers
[6]
Samsung locks in years of chip supply as shortages are expected to persist to 2028
Serving tech enthusiasts for over 25 years. TechSpot means tech analysis and advice you can trust. Forward-looking: Samsung Electronics is locking in long-term chip orders as AI-driven demand continues to exceed available production, and the company expects those constraints to persist for years.
[7]
Samsung posts record $62 billion profit -- and investors sell off anyway | Fortune
Despite their soaring profits, the companies' shares have fallen sharply this week in South Korea's volatile stock market, where retail investors often drive sharp swings in share prices, as concerns grow over their plans to spend massively on increasing manufacturing capacity and the prospects of
[8]
Samsung operating profit up 1,800% in second quarter on AI boom
Seoul (AFP) - South Korean technology giant Samsung Electronics posted on Thursday a massive 19-fold jump in second-quarter operating profit from last year, buoyed by sustained AI-driven demand for memory chips. Samsung and other leading memory chipmakers have seen profits skyrocket in 2026, but
[9]
Samsung profit surges 1,814% as AI chip demand soars
Operating profit at Samsung's semiconductor division rose to more than 220 times its year-earlier level. However, the company warned that memory chip shortages could worsen next year as AI infrastructure expands rapidly. South Korean technology giant Samsung Electronics on Thursday reported a
[10]
Samsung's stock rises on explosive operating profit growth
Samsung Electronics Co. Ltd. today confirmed its earlier expectation that runaway memory chip prices will drive a massive 19-fold jump in operating profit, as robust artificial intelligence demand continues to accelerate momentum in its semiconductor business. The company just announced its full
[11]
Samsung reports billions in record profit for Q2 thanks to AI boom
The chip giant announced $62 billion in earnings for the April-June period. South Korean technology giant Samsung Electronics on Thursday reported a record operating profit of 89.5 trillion won ($62 billion) for the April-June period, a day after crosstown rival SK Hynix also reported record
[12]
Samsung reports record profit as South Korean chip giants benefit from global AI boom
SEOUL, South Korea (AP) -- South Korean technology giant Samsung Electronics on Thursday reported a record operating profit of 89.5 trillion won ($62 billion) for the April-June period, a day after crosstown rival SK Hynix also reported record earnings, as the world's two largest memory chipmakers
[13]
Samsung Reports Record Profit as South Korean Chip Giants Benefit From Global AI Boom
SEOUL, South Korea (AP) -- South Korean technology giant Samsung Electronics on Thursday reported a record operating profit of 89.5 trillion won ($62 billion) for the April-June period, a day after crosstown rival SK Hynix also reported record earnings, as the world's two largest memory chipmakers
[14]
Samsung AI demand drives record chip earnings amid foundry and mobile hurdles
Samsung's semiconductor business achieved record second-quarter performance driven by AI server memory demand. However, its foundry operations continue to trail Taiwan Semiconductor Manufacturing Co. while mobile unit faces rising component costs. The foundry division shows signs of improvement
[15]
Samsung and SK Hynix answer AI doubters with big numbers and deals
In a remarkable week, the titans of the near-$1 trillion global memory industry smashed profit records. It took days before investors stopped selling -- a testament to the depth of anxiety in markets about an AI bubble. In the June quarter, Samsung Electronics and SK Hynix -- whose revenues make
[16]
Samsung And SK Hynix Have Re-Engineered The DRAM Business Model To Defy Peak-Out And Recession
AI customers of various forms have given Samsung and SK hynix new opportunities to reach staggering heights through insatiable DRAM demand. However, these gateways can also become perilous pitfalls if companies aren't careful, which is why both memory manufacturers had to overhaul their entire
[17]
Samsung Stock Jumps Over 6% In Seoul as AI Memory Business Delivers Record Profit: 'Supply Constraints' E
Samsung Electronics Co. Ltd.'s (OTC:SSNLF) shares rose on Thursday after the chipmaker posted a record second-quarter operating profit as surging artificial intelligence memory demand boosted its semiconductor business, though higher component costs weighed on earnings in its mobile
[18]
Samsung To Be Guaranteed A Truckload Of DRAM Profit From AI Customers As Memory Maker Locks In 5-Year Deals To Create Healthy Demand & Price Structure
Five AI datacenter customers have reportedly established 5-year DRAM supply agreements with Samsung, guaranteeing timely shipments for the Korean giant's customers while also maintaining a legally-binding relationship that enables the manufacturer to comfortably rake in profits without worrying
[19]
Samsung Q2 2026: Memory business drives record quarterly earnings despite first-ever loss in mobile division
Samsung has announced its financial results for the second quarter ending June 30, 2026, reporting an all-time quarterly high in revenue. The company posted a consolidated revenue of 171.5 trillion won (approximately USD 119.2 billion), representing a 129.89% year-over-year (YoY) and 79.49%
[20]
Samsung Posts Record Q2 Revenue as AI Memory Chip Demand Drives Profit Surge
Samsung Electronics Co. Ltd. recorded a sharp rise in Q2 earnings, fueled by strong demand for AI memory chips, even as its share price remains volatile amid investor concerns about future spending and competition. The South Korean technology group's revenue for the quarter that ended on June 30
[21]
Samsung reports record profit as South Korean chip giants benefit from global AI boom
SEOUL, South Korea (AP) -- South Korean technology giant Samsung Electronics on Thursday reported a record operating profit of 89.5 trillion won (US$62 billion) for the April-June period, a day after crosstown rival SK Hynix also reported record earnings, as the world's two largest memory
[22]
Samsung Q2 profit surges on AI-fueled memory demand By Investing.com
Investing.com-- Samsung Electronics Co Ltd (KS:005930) clocked a stronger-than-expected second quarter profit on Thursday, as the memory chip maker benefited from outsized artificial intelligence-fueled demand. Net profit for the three months to June 30 jumped to 71.27 trillion won ($49.2
[23]
Samsung Sees Chip Crunch Through 2028 as Profit Soars to Record -- 2nd Update
Samsung Electronics said it expects the memory-chip shortage to persist through 2028, positioning the world's largest memory-chip maker to extend its streak of record earnings as the artificial-intelligence boom continues. The South Korean technology titan gave the upbeat outlook after reporting a
[24]
Samsung Sees Chip Crunch Through 2028 as Profit Soars to Record -- Update
Samsung Electronics said it expects the memory-chip shortage to persist through 2028, positioning the world's largest memory-chip maker to extend its streak of record earnings as the artificial-intelligence boom continues. The South Korean technology titan gave the upbeat outlook after reporting a
[25]
Samsung's Chip Earnings Push Net Profit to Record
Samsung Electronics' net profit surged 14-fold in the second quarter, as a stellar performance by its core semiconductor division, fueled by robust demand for advanced artificial-intelligence chips, helped the technology titan extend its streak of record earnings. The robust results from the
[26]
Samsung says memory chip shortage may continue even after 2027, here is what we know
Strong AI demand is helping Samsung's chip business grow despite challenges in other areas. Samsung Electronics has recently warned that the ongoing global memory chip shortage is likely to continue through 2027. They further added that the chipset shortage may stretch into 2028 as well because
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Samsung posted a record $62 billion operating profit in Q2 2026, driven by surging demand for AI servers and memory chips. But the company warns the global memory shortage will intensify through 2028, causing its mobile division to post its first-ever loss of $544 million due to soaring component costs.
Samsung Reports Record Profit Amid AI Chip Boom
Samsung Electronics announced a record operating profit of 89.5 trillion won ($62 billion) for the second quarter of 2026, marking a 19-fold increase from the previous year
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. The South Korean tech giant's revenue reached an all-time high of 171.5 trillion won ($119 billion), up 130 percent year-on-year2
. Nearly all of this profit came from Samsung's semiconductor business, which benefited from rising chip prices driven by AI chip demand and increased shipments of advanced high-bandwidth memory chips used to power AI applications5
. The Device Solutions Division posted a quarter-on-quarter sales increase of 56 percent, with the Memory Business setting an all-time high for both quarterly revenue and operating profit4
.Memory Shortage Expected to Intensify Through 2028
Despite these record earnings, Samsung warns that the memory chip supply crunch will deepen and persist through 2028. Jaejune Kim, Samsung's executive vice president of memory, explained that the rapid adoption of agentic AI has led to increased demand for AI servers and overall computing infrastructure
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. AI frontier model developers are struggling to secure enough cloud capacity, and the industry continues to prioritize production of components for AI servers, creating a shortfall of mainstream memory types needed for consumer tech products like PCs and smartphones2
.The lead time from starting construction of a fabrication plant to producing wafers exceeds three years, meaning any significant increase in incremental supply is unlikely through 2028
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. Kim stated that unmet demand from this year will likely carry over into the following year, contributing to tighter supply conditions. "The supply constraints are expected to become even more severe in 2027 than 2026, reinforcing our view that the supply shortage will persist through 2028," Kim told analysts1
.Mobile Division Posts First-Ever Loss Due to Soaring Memory Prices
While Samsung's semiconductor business thrived, the company's DX division, which includes mobile, TV, and home appliances, posted its first-ever loss of 800 billion won ($544 million) in the second quarter
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. Despite solid sales of flagship products centered on the Galaxy S26 series and strong sales of the A series, operating profit decreased due to increased component costs across the industry4
.Daniel Araujo, Samsung's vice president of mobile experience, confirmed that surging demand for AI servers is driving the mobile memory shortage and resulting in soaring memory prices
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. Budget phones struggled to show a profit due to higher component costs and already-thin margins. As a result, Samsung plans to focus on high-value-added products like the Galaxy S26 Ultra and Galaxy Z Fold 8 series to drive growth in future quarters4
.RAMageddon Drives Higher Tech Prices for Consumers
The RAM shortage, sometimes dubbed RAMageddon, means chips for devices like laptops and smartphones are costing manufacturers more
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. Samsung didn't explicitly state whether consumers should expect higher prices, but some new products revealed at Samsung Unpacked already cost more than earlier models, like the $1,200 Galaxy Z Fold 81
. The memory chip shortage has already led other big-name tech companies, including Apple and Microsoft, to increase prices on new and existing products1
.Consumers can expect higher smartphone prices across all categories from Samsung and other brands. This inflation will hit low-income buyers hardest, as prices for smartphones in the $200-500 category will likely rise the most, percentage-wise
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Samsung Secures Long-Term Supply Agreements
To hedge against mid- to long-term risks, Samsung has been engaging in multiyear supply agreements with customers who can guarantee committed future demand
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. AI developers seeking to meet their memory needs are increasingly approaching Samsung for substantial AI service infrastructure, prioritizing those willing to sign up for years of memory purchases1
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. Samsung hopes these agreements will reduce its exposure to the memory market's boom-and-bust cycles.The company expects output, measured in bits, to grow by the mid-single digits for DRAM and the high single digits for NAND flash next quarter. It will aim to expand sales of high-performance products including HBM4, HBM4E, DDR5, SOCAMM2, and enterprise SSDs
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.Global AI Boom Benefits Samsung and SK Hynix
The global AI boom has benefited both Samsung and its crosstown rival SK Hynix. SK Hynix also reported record second-quarter revenue of 60.5 trillion won ($42 billion)
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. However, despite their soaring profits, both companies' shares have fallen sharply this week in South Korea's volatile stock market, as concerns grow over their plans to spend massively on increasing manufacturing capacity and the prospects of intensifying competition from China5
.Taiwan-based market watcher TrendForce agrees that AI will remain a primary driver of DRAM demand in 2027, but expects to see supplies of NAND flash ease in the second half of the year as new production capacity comes online
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. For DRAM, several suppliers plan to start new lines in 2027, but construction schedules, equipment installation, and other requirements will delay meaningful production ramp-ups until the second half of 2027, meaning substantial extra output is not expected to materialize until 20282
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