Samsung Electronics posted a sharp rise in second-quarter operating profit that topped analyst estimates, as booming demand for artificial intelligence memory chips more than compensated for weakness in its mobile division.
The South Korean technology giant reported that operating profit jumped roughly 19-fold from a year earlier, extending a record run driven by surging appetite for the high-bandwidth memory used to power AI data centers and servers.
The results mark a striking turnaround from the same period a year earlier, when the company’s chip business struggled under falling margins and softer demand. Memory has since rebounded as cloud providers and AI developers race to secure supply.
Demand for advanced memory products, particularly high-bandwidth memory, has tightened across the industry as companies build out computing infrastructure for generative AI workloads. That squeeze has lifted prices and boosted the profitability of leading suppliers.
The strength in chips helped offset a loss in Samsung’s mobile business, which has faced intensifying competition and softer consumer spending in key markets. The divergence underscores how the memory cycle, rather than handset sales, is now the primary engine of the company’s earnings.
Samsung has been working to close the gap with rivals in the supply of the most advanced memory chips, an area where competitors have secured early positions with major AI customers. Progress on that front is seen as critical to sustaining the company’s momentum.
The upbeat figures echo a broader recovery across the memory sector, where rival SK Hynix has repeatedly reported record profits tied to AI-related demand.
Analysts suggest the current upcycle could persist as long as investment in AI infrastructure remains robust, though the pace of expansion and pricing dynamics will shape earnings in the quarters ahead.
Samsung is expected to release detailed divisional results with its full earnings report, offering a clearer breakdown of chip, mobile, and display performance. Investors will be watching closely for signals on memory pricing and the company’s positioning in the next generation of AI hardware.