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Seoul, July 7, 2026 – Samsung Electronics is set to deliver one of the most dramatic earnings turnarounds in its history, with analysts forecasting an 18 fold jump in quarterly profit.
The surge underscores how artificial intelligence has reshaped the global semiconductor market, turning memory chips into the backbone of a new computing era.
The South Korean giant is expected to post operating profit of 86 trillion won (US$72.6 billion) for the April June period, compared with just 4.7 trillion won a year earlier.
This marks the company’s third consecutive record quarter, powered by unprecedented demand for high‑bandwidth memory (HBM), DRAM, and NAND chips.
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These components are essential for training and running advanced AI models, which require vast amounts of data to be processed at lightning speed.
The boom reflects a broader industry trend. Prices for DRAM rose 44 percent in the second quarter, while NAND climbed 53 percent.
Investors have responded with enthusiasm Samsung’s shares have surged 158 percent this year, while rivals SK Hynix and Micron have gained 273 percent and 242 percent respectively, each crossing the US$1 trillion market capitalization threshold.
Yet the euphoria is tempered by looming challenges.
Samsung recently agreed to allocate 10.5 percent of semiconductor profits to employee bonuses after averting a strike.
Analysts estimate provisions could exceed 40 trillion won, potentially denting reported earnings.
At the same time, questions remain about whether cloud providers can sustain such heavy spending on AI infrastructure.
JPMorgan has warned that memory’s share of cloud capital expenditure already at 52 percent in 2026 and projected to hit 70 percent next year may prove unsustainable.
The company’s mobile division is also feeling the strain.
Rising memory costs have squeezed smartphone margins, forcing Samsung to raise handset prices.
Apple has already taken similar steps, signaling that consumers may face higher costs across the industry.
Despite these pressures, Samsung is doubling down on its long‑term strategy.
Alongside SK Hynix, it has pledged 3,200 trillion won (US$2.7 trillion) to expand chip capacity in South Korea through 2040.
The company has also secured multi‑year supply contracts with major customers including Nvidia, Google, and Apple, though details remain undisclosed.
Analysts at Nomura project DRAM prices will rise another 24 percent and NAND 25 percent in the third quarter, supported by strong consumer and data‑center demand.
The stakes are enormous. As AI systems evolve from training large models to agentic architectures capable of multi‑step reasoning, memory requirements will only intensify.
Samsung’s record profits highlight its central role in this transformation, but the company must balance growth with labor costs and market sustainability.
The upcoming earnings release later this month will reveal whether bonus provisions dent headline figures.
For now, Samsung stands as the clearest beneficiary of the AI revolution, riding a wave of demand that has redefined the economics of the chip industry.
