Samsung Electronics posted a report second-quarter working revenue of 89.5 trillion received ($62 billion), up 1,814% yr over yr, as synthetic intelligence (AI) demand for reminiscence chips pushed gross sales to an all-time excessive.
Income climbed 28% quarter over quarter to 171.5 trillion received, a recent firm report. It narrowly missed analyst forecasts, at the same time as revenue beat expectations.
AI Server Demand Drives the Reminiscence Increase
Samsung’s Machine Options division, house to its reminiscence chip enterprise, posted a 56% quarterly gross sales soar. The unit’s reminiscence arm set data for each income and working revenue.
Samsung prioritized server merchandise to satisfy AI capability wants. Server gross sales reached a report share of its chip combine in consequence.
The corporate additionally scaled up manufacturing of HBM4, a high-bandwidth reminiscence chip utilized in AI processors. It shipped the business’s first samples of HBM4E, the next-generation model of that chip, to main clients.
Samsung expects that momentum to proceed. It forecasts accelerating demand for server reminiscence and high-bandwidth chips by way of the second half of 2026, as AI infrastructure spending broadens additional.
The forecast follows Samsung’s latest AI chip provide offers with Nvidia and Broadcom.
Report Outcomes Observe a Sharp Selloff
The earnings beat got here a day after a pointy selloff. Samsung shares fell greater than 12% on Wednesday, and rival SK Hynix tumbled practically 20%. Merchants had been unwinding AI-related bets over fears that revenue forecasts had run too far forward of actuality.
SK Hynix additionally reported a report revenue on Wednesday, however it missed analyst estimates. Each chipmakers stay central to the AI reminiscence inventory rally that has outlined South Korean equities in 2026, alongside the broader KOSPI’s AI-driven rebound.
MS Hwang, an analyst at Counterpoint, mentioned that Samsung’s reminiscence energy is spilling into its different enterprise items.
“In brief, Samsung is leveraging its robust place in reminiscence to aggressively seize share throughout most of its enterprise items.”
Analysts broadly count on the reminiscence growth to persist as knowledge heart operators maintain increasing AI capability. This week’s swings counsel some traders are questioning how lengthy the streak can final.
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