--- title: "South Korea gives birth to the most profitable company in the world! Samsung earned 400 billion in Q2, equivalent to 7 Tencent, 84 Xiaomi, and 115 Baidu, while global tech stocks have been dragged down" type: "News" locale: "en" url: "https://longbridge.com/en/news/291878246.md" description: "Samsung Electronics' Q2 operating profit is expected to reach 89.4 trillion won, setting a new historical record, far exceeding NVIDIA and Chinese tech giants. Despite an 18-fold surge in performance, the South Korean stock market plummeted nearly 8% due to market concerns, and U.S. stock memory chip stocks and related A-share stocks also saw significant declines" datetime: "2026-07-07T04:55:40.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/291878246.md) - [en](https://longbridge.com/en/news/291878246.md) - [zh-HK](https://longbridge.com/zh-HK/news/291878246.md) --- # South Korea gives birth to the most profitable company in the world! Samsung earned 400 billion in Q2, equivalent to 7 Tencent, 84 Xiaomi, and 115 Baidu, while global tech stocks have been dragged down On July 7th, the highly anticipated earnings forecast from Samsung Electronics was released, with a projected operating profit of 89.4 trillion Korean won, approximately 58.4 billion USD, or 398.7 billion RMB, surpassing Nvidia and setting a historical record for human companies. The expected sales revenue is about 171 trillion Korean won, roughly 112.2 billion USD, or 762 billion RMB. The semiconductor (core stock) sector contributed approximately 75.3 trillion in operating profit, accounting for a staggering 94% of total profits. The storage business (DRAM + HBM + NAND) is the absolute mainstay, with AI computing (core stock) demand driving the premium for high-end HBM storage, leading to continuous price increases across all categories of storage chips. How exaggerated are Samsung Electronics' earnings? By the end of 2025, South Korea's population is projected to be 51.68 million, meaning Samsung's second-quarter profit could provide an average of about 7,700 RMB per person in South Korea. Currently, Samsung Electronics ranks first in the single-quarter profit leaderboard among tech companies, with Nvidia, Google, Microsoft, and Apple occupying the 2nd to 5th positions. Compared to Chinese tech giants, Samsung Electronics' single-quarter profit is roughly equivalent to 7 Tencent, 84 Xiaomi, and 115 Baidu (the second-quarter reports have not yet been released, all based on first-quarter calculations). The highest net profit among A-share listed companies in the first quarter was Industrial and Commercial Bank of China (core stock) (86.9 billion), followed by China National Petroleum (48.3 billion), China Mobile (29.3 billion), Kweichow Moutai (27.2 billion), and CATL (20.7 billion). Samsung Electronics is equivalent to 5 ICBCs, 8 PetroChina, 15 Moutai, and 19 CATLs. However, despite the 18-fold surge in Samsung Electronics' performance, the market did not respond positively. Today, the South Korean stock market plummeted in early trading, triggering a circuit breaker, with the Seoul Composite Index currently down nearly 8%, and both Samsung Electronics and SK Hynix experiencing significant declines. In the U.S. stock market, SanDisk and Micron also fell sharply after hours. Following the unexpected plunge of Samsung Electronics and SK Hynix, A-share storage stocks also saw significant declines, with leading companies Jiangbolong, Demingli, and Baiwei Storage suffering heavy losses. Previously, the core logic behind the market speculation on storage chips was that the industry is entering a super cycle driven by AI, with a structural imbalance in supply and demand pushing prices to continue soaring. Leading companies' performances significantly exceeded expectations, and the storage shortage is expected to persist until 2027 or even longer, shifting the industry from traditional cyclical attributes to a long-term structurally high prosperity phase. Nvidia CEO Jensen Huang stated that the global shortage of high-bandwidth memory is expected to last for several years, driven by the exponential growth in storage bandwidth and capacity demand from AI computing, while the expansion of advanced storage chip production capacity is constrained by technical complexity and manufacturing cycles, making it difficult to bridge the gap in the short term. According to the latest report from TrendForce, it is expected that in the third quarter of 2026, the contract price of traditional DRAM products will increase by 13% to 18% quarter-on-quarter, while the contract price of NAND flash (core stock) will rise by 10% to 15% quarter-on-quarter Bank of America Securities believes that the core of this round of the storage industry's prosperity cycle is the surge in demand for HBM, advanced DRAM, and enterprise-grade SSDs driven by AI servers, while the supply side is expanding slowly due to multiple constraints such as capital, technology, and factory capacity. This super cycle may last until 2027 or even longer. Recently, SK Hynix launched a US IPO with a scale of approximately $28 billion and received oversubscription, further validating the high prosperity of the industry. **Related Industries:** Storage Chip Design and Manufacturing: As the core link of the storage chip industry chain, the explosion of AI-driven demand directly drives both volume and price increases in this sector. As the shortage of high-end storage chips intensifies, companies with advanced process technology and production capacity will have stronger bargaining power, and the performance growth (core stocks) will be highly certain. Meanwhile, technological iteration will also promote the optimization of the industry structure, with leading companies' market share and profitability continuing to rise. Storage Chip Modules and Packaging: The performance requirements for storage modules from end products such as AI servers and high-end smartphones are continuously increasing. Coupled with the rising prices of storage chips, the product value of module manufacturers is also growing. The packaging segment, especially advanced packaging technology, has become key to enhancing the performance of storage chips. Related companies will benefit from the increasing demand for high-end storage products, while technological upgrades will also bring new profit growth points. Semiconductor (Core Stocks) Equipment and Materials: The expansion of storage chip production capacity and technological iteration relies on support from upstream equipment and materials. The storage super cycle driven by AI will prompt manufacturers to increase equipment procurement and material investment. Whether it is core equipment such as photolithography machines and etching machines, or key materials like electronic specialty gases (core stocks) and target materials, demand will continue to grow, providing related companies with long-term development opportunities, and the process of domestic substitution will also accelerate. 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