Samsung Q2 profit surges 1,800% on AI chip demand

Samsung Electronics forecast a 19-fold jump in second-quarter operating profit to 89.4 trillion won ($58.4 billion), driven by surging demand for AI memory chips. The world's largest memory chipmaker benefited from rising prices of DRAM and NAND, with average selling prices up 44% and 53% quarter-on-quarter respectively. Revenue rose 129% to 171 trillion won. The earnings beat market expectations despite provisions for employee bonuses linked to a wage deal. Samsung's shares fell up to 6.8% on the announcement as some investors had priced in even higher results. Analysts expect the memory shortage to persist through next year, supported by AI infrastructure spending from hyperscalers like Meta, Microsoft, Amazon, and Alphabet. Risks include potential slowdowns in AI investment and rising costs for Samsung's mobile business. The company plans to release detailed results on July 30.