Samsung posted record Q2 2026 profit driven by surge in AI memory chip (HBM/DRAM) demand

Samsung Electronics reported a record second-quarter operating profit of 89.5 trillion won ($118.7 billion), beating analyst forecasts of 88.13 trillion won. Revenue reached 171.5 trillion won, slightly below expectations of 172.65 trillion won. Despite the strong earnings, Samsung's shares closed 0.72% lower on Thursday.

Operating profit surged 1,814% year-on-year and rose over 56% quarter-on-quarter, while revenue increased 130% from the prior year and climbed more than 28% sequentially. Both figures aligned with Samsung's preliminary guidance issued earlier this month.

The record performance was driven by surging demand for AI servers, which fueled unprecedented sales of DRAM and NAND memory chips used in smartphones, automotive systems, servers, and other electronics. Samsung increased capital expenditure on its memory business, expanding its fabrication facility in Pyeongtaek and other infrastructure to meet rising AI demand while advancing research and development.

The company ramped up sales of sixth-generation High Bandwidth Memory (HBM4) chips and shipped industry-first HBM4E samples to major customers. These chips are designed to power next-generation AI processors, including Nvidia's Vera Rubin platform.

Samsung noted experiencing "exponential growth in demand for general-purpose computing alongside AI" and is closely monitoring demand across HBM and server DRAM while maintaining an optimal product mix to support long-term AI growth. The company expects industry-wide supply constraints to persist into next year and plans to manage its HBM and DRAM businesses to achieve HBM market share comparable to conventional DRAM.

For the second half of the year, Samsung forecasts robust memory demand driven by continued AI infrastructure investment and broader adoption of agentic AI technologies. The company expects demand for server DRAM, enterprise solid-state drives (eSSDs), and HBM products to accelerate further. Samsung warned that supply constraints could tighten even more by 2027 as rapidly expanding AI token generation drives exponential demand.

An increasing number of customers are pursuing multi-year supply agreements to secure AI infrastructure capacity, providing Samsung greater visibility into future demand and flexibility in investment planning. The company has finalized agreements with its top five global data centre customers, while negotiations with five additional major clients seeking AI-related memory solutions are in their final stages.

Regarding speculation over a potential US stock listing, Samsung stated it is "not currently reviewing an ADR issuance," though noted that "from a mid to long-term shareholder value perspective, an ADR remains one of several possible options that could be open for consideration."

Josh Gilbert, Lead Analyst for APAC at eToro, observed: "The AI infrastructure buildout is still paying its suppliers handsomely, and Samsung expects more to come, pointing to strong memory demand in the second half as agentic AI adds another layer of appetite for its chips."

While the semiconductor division powered earnings, Samsung's mobile and networks business posted a 700 billion won loss, reflecting elevated component cost pressures. The decline was driven by component costs, though revenue increased year-on-year on strong Galaxy S26 series sales and momentum for the Galaxy A lineup. Gilbert noted that "the strength of the memory business is remarkable, but so is Samsung's dependence on it," observing that the mobile division was squeezed by the same component price increases that boosted semiconductor profits.

Samsung also highlighted robotics as a long-term growth pillar, revealing it has established a dedicated robotics division under direct CEO supervision. The company views robotics alongside artificial intelligence as a strategic growth area and is exploring partnerships with startups and potential mergers and acquisitions to accelerate expansion.

Last week, Samsung unveiled its latest foldable smartphone lineup and announced an expanded strategic partnership with Broadcom covering memory and foundry technologies.

Samsung's results came a day after rival SK Hynix announced record second-quarter profit, though its results fell short of analyst expectations.