Seoul — Samsung Electronics reported a nearly 1,300% increase in second-quarter net profit as strong demand for artificial intelligence-related semiconductors offset weaker earnings from its mobile business.
Net profit for the April-to-June quarter rose to 71.62 trillion won, or about $49.6 billion, from 5.11 trillion won in the same period a year earlier, the South Korean technology company said.
Operating profit surged to 89.49 trillion won from a year earlier, while revenue increased 130% to 171.49 trillion won.
The results marked Samsung’s third consecutive quarter of record revenue and operating profit.
Net profit was broadly in line with analysts’ average estimate of 71.21 trillion won, according to data compiled by Yonhap Infomax.
Earnings per share totaled 10,849 won for both common and preferred shares, up 52% from the previous quarter.
Samsung attributed the strong performance to rising demand for AI-related products and its position in the global memory chip market.
The company’s semiconductor business generated record quarterly revenue of 127.5 trillion won and operating profit of 89.2 trillion won.
Growth in global AI infrastructure spending has tightened semiconductor supplies and supported higher memory chip prices.
Samsung said it expects semiconductor demand to remain strong during the second half of the year as companies continue investing in AI infrastructure.
“In the second half of this year, the memory business expects robust demand centered on servers stemming from continued AI infrastructure capex and broader adoption of agentic AI,” the company said.
Samsung said the gap between chip supply and demand could widen further next year.
The company plans to adjust its mix of DRAM and NAND flash memory products in response to changing market conditions and customer demand.
Samsung also expects profitability in its contract chip manufacturing business to improve during the second half as it shifts its portfolio toward higher-growth segments.
Capital expenditures totaled 16.8 trillion won during the quarter, an increase of 5.5 trillion won from the previous quarter.
Samsung invested 15.4 trillion won in its semiconductor division and 700 billion won in its display business. (Source: IANS)
