Performance Fully Exceeds Expectations! Samsung's Q2 Net Profit Surges 1,299.9%

Driven by robust demand for HBM, the memory chip sector is seeing an upturn in prosperity. Samsung Electronics has reported strong second-quarter results.

The company disclosed on Thursday that its operating profit for the second quarter reached 89.49 trillion won, representing a substantial year-on-year increase of 1,813.8% and a quarter-on-quarter rise of 56.4%, slightly exceeding the market consensus estimate by approximately 5%. Net profit for the same period soared 1,299.9% year-on-year to 71.62 trillion won (approximately $49.6 billion). Sales revenue amounted to 171.50 trillion won.

Samsung's actual operating profit exceeded the market consensus by about 5%, indicating that its product mix and pricing power were stronger than analysts had previously anticipated. This result is expected to further reinforce investor expectations for a continued upswing in the global memory chip cycle.

Quarterly Performance Fully Beats Expectations

Samsung's operating profit in the second quarter was 89.49 trillion won, marking a leapfrog growth from 4.68 trillion won in the same period last year, and also rising significantly from 57.23 trillion won in the first quarter.

In terms of sales, the second quarter recorded 171.50 trillion won, a year-on-year increase of 130.0% and a quarter-on-quarter increase of 28.1%, showing a significant recovery momentum.

Looking at the cumulative data for the first half of the year, combined revenue for the first two quarters reached 305.37 trillion won, with operating profit totaling 146.73 trillion won. These figures represent year-on-year increases of 98.7% and 1,191.5% respectively, highlighting the strength of the current industry recovery.

HBM Demand Drives Upturn in Memory Chip Prosperity

As one of the world's largest suppliers of High Bandwidth Memory (HBM), Samsung is benefiting from the massive demand for HBM chips driven by the wave of investment in artificial intelligence computing power. HBM is a key memory component relied upon for training and inference in large language models, with unit prices and profit margins significantly higher than those of traditional DRAM products.

Previously, Samsung faced pressure due to a sharp decline in memory chip prices between 2022 and 2023. Its operating profit in the same period last year was only 4.68 trillion won, serving as a low base for this high-growth comparison. As inventory cycles gradually clear and AI-related demand takes over from traditional consumer electronics demand, Samsung's profitability has been substantially restored.

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