--- title: "Samsung Q2 earnings forecast released: Operating profit increased by more than 1800% year-on-year, with quarterly profit exceeding the total of the past three years!" type: "News" locale: "en" url: "https://longbridge.com/en/news/291853507.md" description: "Samsung Electronics released its Q2 earnings forecast, driven by the AI wave, with operating profit surging 1810.2% year-on-year to KRW 89.4 trillion, and revenue increasing by 129%. The performance far exceeded market expectations and the total of the previous three years, mainly due to the shortage and price increase of memory chips caused by the squeeze in HBM capacity. Despite strong stock performance, it still lagged behind SK Hynix, and the company plans to invest over $70 billion in expansion and research and development by 2026" datetime: "2026-07-06T23:50:55.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/291853507.md) - [en](https://longbridge.com/en/news/291853507.md) - [zh-HK](https://longbridge.com/zh-HK/news/291853507.md) --- # Samsung Q2 earnings forecast released: Operating profit increased by more than 1800% year-on-year, with quarterly profit exceeding the total of the past three years! Global semiconductor giant Samsung Electronics has released an exceptionally strong preliminary financial report for the second quarter. The data shows that driven by the strong wave of artificial intelligence (AI), the world's largest memory chip manufacturer is entering its most brilliant profit cycle in history. According to the financial report, **Samsung's operating profit in the second quarter surged by 1810.2% year-on-year**, reaching 89.4 trillion won (approximately 58 billion USD). This figure not only far exceeds the market's previous expectation of 84.2 trillion won but also astonishingly surpasses the company's total profit for the three years from 2023 to 2025. Meanwhile, the company's revenue also grew by 129% year-on-year, reaching 171 trillion won. After Samsung announced its performance forecast, SanDisk (SNDK.O) and Micron Technology (MU.O) saw their stock prices decline in after-hours trading. The explosive performance of Samsung is directly benefiting from the "thirst" for high-performance storage chip orders from AI data centers. Industry giants like NVIDIA and OpenAI have repeatedly stated that **the shortage of memory chips has become a core bottleneck in the current development of AI.** Due to major manufacturers prioritizing the production capacity of high-bandwidth memory (HBM) designed specifically for AI, this has inversely squeezed the conventional memory space needed for smartphones, personal computers, and enterprise servers. This "capacity squeeze" effect has led to a severe shortage in the global storage market. **HSBC data shows that the average selling price of DRAM in the second quarter of 2026 is expected to rise by over 40% compared to the previous quarter, with NAND prices increasing by over 50%; Citigroup research provides even higher estimates of 44% and 53%, respectively.** Analysts generally believe that this "seller's market" pattern will last at least until 2027, granting Samsung and its old rivals SK Hynix and Micron Technology strong pricing power. Despite the impressive performance, Samsung still faces challenges in the capital market. Since the beginning of this year, Samsung's stock price has risen by about 165%, which is a decent performance but still lags behind SK Hynix, which focuses on high-end AI storage (with a rise of 260%). Investors are closely watching whether Samsung can continue to lead in the competition for market share in cutting-edge AI computing. To solidify its position, Samsung has announced plans to invest over 70 billion USD in capacity expansion and technology research and development by 2026. Meanwhile, the South Korean government is also mobilizing the entire nation to promote the AI chip industry. **Samsung and SK Group plan to jointly invest 80 trillion won to build four world-class wafer fabs in southwestern South Korea, aiming to double the country's memory capacity within five years.** It is worth noting that while the storage business is making huge profits, Samsung's other business lines are still under pressure. Due to the chip division implementing a bonus system linked to profits, **the huge labor cost expenditures are expected to lower the profit margins of the foundry and logic chip divisions, and the losses in these two divisions may further expand.** Samsung Electronics plans to release its official financial report on July 30, which will provide detailed operational specifics for each business segment ### Related Stocks - [07709.HK](https://longbridge.com/en/quote/07709.HK.md) - [EWY.US](https://longbridge.com/en/quote/EWY.US.md) - [03121.HK](https://longbridge.com/en/quote/03121.HK.md) - [SSNGY.US](https://longbridge.com/en/quote/SSNGY.US.md) - [SNDK.US](https://longbridge.com/en/quote/SNDK.US.md) - [MU.US](https://longbridge.com/en/quote/MU.US.md) - [NVDA.US](https://longbridge.com/en/quote/NVDA.US.md) - [OpenAI.NA](https://longbridge.com/en/quote/OpenAI.NA.md) - [HSBC.US](https://longbridge.com/en/quote/HSBC.US.md) - [00005.HK](https://longbridge.com/en/quote/00005.HK.md) - [C.US](https://longbridge.com/en/quote/C.US.md) - [SMSN.UK](https://longbridge.com/en/quote/SMSN.UK.md) - [NVD.DE](https://longbridge.com/en/quote/NVD.DE.md) - [DTIW.SG](https://longbridge.com/en/quote/DTIW.SG.md) - [HSBA.UK](https://longbridge.com/en/quote/HSBA.UK.md) - [C-R.US](https://longbridge.com/en/quote/C-R.US.md) ## Related News & Research - [The 2 signals that will determine EWY’s next 12 months: AI memory demand and Samsung concentration](https://longbridge.com/en/news/291580772.md) - [Weekly Recap: ADS offering, Nasdaq listing and Cheongju 100T investment](https://longbridge.com/en/news/291849018.md) - [SK Telecom pursues construction of 15 GW AI data center](https://longbridge.com/en/news/291728658.md) - [Weekly Recap: HBM fab and packaging investment and large bonus provisions](https://longbridge.com/en/news/291849213.md) - [Taiwan's Unimicron seeks $1.4 billion from depositary share sale as chip firms tap AI boom](https://longbridge.com/en/news/291766152.md)