Samsung Electronics, the South Korea based tech giant, reported net profit of 9.84 trillion won for the second quarter, roughly 7.139 billion dollars, marking a year over year rise of about 471 percent. The surge is linked to higher chip prices driven by the excitement around artificial intelligence and the growing demand for AI related hardware.
The company, headquartered in Suwon just south of Seoul, posted operating earnings before interest, taxes, depreciation, and amortization of 11.60 trillion won, around 7.7 billion euros, a sixfold increase from the same period last year. Its operating profit reached about 10.44 trillion won, equivalent to around 7.0 billion euros. Revenue stood at roughly 74.0 trillion won, or 49.5 billion euros, up 23.4 percent from the second quarter of the prior year. These figures reflect continued momentum in the firm’s memory and system chip businesses as AI related demand broadens across data centers, consumer devices, and enterprise solutions.
Samsung’s results were somewhat more modest than the company’s own projections announced in early July, when management anticipated operating profit of about 10.4 trillion won (approximately 6.97 billion euros) for the quarter. The firm explained that the final results were driven mainly by price increases for DRAM and NAND flash memory devices produced for AI workloads. In a statement issued today, Samsung emphasized that high value added products for AI, combined with general price improvements, contributed to a strong quarterly performance.
After a challenging 2023, during which softer demand forced inventory adjustments and sizable production cuts, the company signaled in the first quarter that a solid recovery was underway for the year. Management indicated inventory declines, improved demand conditions, and ongoing price competitiveness in memory products would underpin the improved quarterly results as AI uptake accelerates across industries.
Looking ahead, analysts expect Samsung to continue leveraging the AI cycle, with a focus on expanding high value offerings and maintaining discipline in inventory management. The second half outlook remains tied to AI related demand cycles, pricing dynamics in memory products, and the company’s ability to sustain efficiency gains across its hardware ecosystem.