Samsung posts record profits on AI chip demand

Samsung posts record profits on AI chip demand and HBM4 progress, but faces concerns over competition, high costs, and supply shortages driving memory prices up.

Samsung Electronics reported record operating profits in Q2 2026, fueled by surging global demand for memory chips essential to artificial intelligence. Operating profit soared to 89.5 trillion won, nearly 19 times higher than the previous year, with quarterly revenue reaching 171.5 trillion won. The semiconductor division was the primary driver, benefiting from the AI boom and the rapid expansion of agentive AI infrastructure and applications. Samsung advanced its HBM4/HBM4E memory production, shipping first samples to major clients and reinforcing its leadership in high-performance memory. Despite these achievements, shares of Samsung and SK Hynix declined due to concerns over rising Chinese competition, high capital expenditures, and doubts about the sustainability of growth. Meanwhile, global chip and GPU demand caused sharp price increases and supply shortages, notably in Shenzhen, where SSD and DDR5 memory prices more than doubled.