Samsung Electronics reported that its second-quarter operating profit exceeded market expectations, primarily driven by demand for AI servers, with its memory chip business continuing to expand. The company stated that revenue and operating profit were largely in line with its earlier guidance this month, indicating that investment in AI infrastructure continues to support its core semiconductor business.
Second-quarter profits reached a new high.
According to the company's disclosure, Samsung's second-quarter revenue was 171.5 trillion Korean won, below the market expectation of 172.65 trillion Korean won; operating profit was 89.5 trillion Korean won, above the expected 88.13 trillion Korean won.
- Revenue increased by 130% year-over-year
- Operating profit increased by 1814% year-over-year
- Operating profit increased by over 56% quarter-over-quarter.
The company stated that demand for AI servers was the primary driver behind the record performance of its storage business, pushing DRAM and NAND sales to historic highs. These chips are widely used in smartphones, automotive systems, and servers, with server demand showing the most significant growth.
HBM4 shipments are expanding
Samsung stated that, in response to rising AI demand, it has expanded HBM4 sales and delivered the industry's first HBM4E samples to key customers. HBM4 is Samsung’s sixth-generation high-bandwidth memory product, designed for next-generation AI processors, including NVIDIA’s Vera Rubin platform.
The company also stated that storage capital expenditures increased quarter-over-quarter to meet AI demand, with investment priorities including the new Pyeongtaek wafer fab and other infrastructure projects, while continuing to advance advanced R&D.
Server demand remains看好 in the second half of the year.
Samsung expects storage demand in the second half of the year to remain server-centric, with continued capital expenditure on AI infrastructure and ongoing growth in Agentic AI driving demand for related chips. The company states it is closely monitoring the demand trends for HBM and server DRAM, and is adjusting its product mix to support long-term AI needs.
Samsung also expects industry supply constraints to persist into next year and potentially intensify further by 2027. With the rapid growth in AI token generation, demand for HBM, server DRAM, and enterprise SSDs is expected to continue rising over the coming years.
The company stated that an increasing number of customers are seeking multi-year supply agreements to secure the capacity needed for AI infrastructure. Samsung said it has finalized agreements with the world’s top five data center customers and is in the final stages of negotiations with five additional major clients.
Response to rumors of U.S. listing
Regarding the possibility of listing in the U.S., Samsung stated that it has not currently evaluated issuing ADRs. The company also noted that, from a medium- to long-term shareholder value perspective, ADRs remain one of several potential options under consideration.
In addition to semiconductors, Samsung also mentioned that its robotics business has been brought under the direct management of the CEO. The company stated that robotics, like AI, is a key growth priority for the future, and it is exploring collaborations with startups while evaluating potential investment and acquisition opportunities.
Additional information: On the same day, SK Hynix, Samsung’s rival in South Korea, also reported record second-quarter profits, but they fell short of analyst expectations.