Samsung Sets Profit Record on AI Boom; Stock Slides on Capex

Seoul — Samsung Electronics on Thursday reported a record April–June operating profit of 89.5 trillion won ($62 billion), lifted by demand for AI servers and high‑bandwidth memory. Quarterly revenue reached an all‑time high of 171.5 trillion won ($119 billion). Most profit came from semiconductors, which offset losses in smartphones, TVs and home appliances.

Shares fell this week in Seoul after Samsung and rival SK Hynix flagged large capital spending plans, while investors weighed the threat of intensifying competition from China.

Samsung projected firm memory demand in the second half, citing expansion of AI infrastructure by data center operators and wider use of newer agentic AI systems. The company expects server‑chip orders to accelerate and supply to remain tight.

Second‑quarter operating profit was more than 19 times higher than a year earlier, reflecting higher chip prices and increased shipments of advanced memory used to train and run AI models. The device division posted an operating loss, which Samsung linked partly to higher component costs.

On Wednesday, SK Hynix reported record second‑quarter revenue of 60.5 trillion won ($42 billion). Profit came in below elevated market expectations, and its shares fell more than 9% that day. Samsung’s stock also declined during the week.

Kim Jaejune, an executive in Samsung’s memory business, forecast a wider gap between chip supply and demand in 2027. Construction of a second semiconductor fab in Taylor, Texas, is slated to begin before year‑end, with production targeted by 2030. He noted that Samsung has secured long‑term supply agreements with the “five major global data center clients,” and discussions are ongoing with other large technology customers. During a conference call, Kim added: “Despite our efforts to increase production, demand growth is outpacing our efforts.”

Samsung and SK Hynix together produce about two‑thirds of the world’s memory chips. Both are increasing investment in fabrication plants and AI‑related infrastructure. Last month, the companies outlined plans to invest a combined 800 trillion won ($554 billion) in a new chipmaking hub in southwest South Korea.

Concerns about Chinese advances have pressured South Korean chip stocks. During the same period, a state‑owned Chinese firm was reported to have begun mass‑producing immersion deep‑ultraviolet lithography tools used in advanced chipmaking. Chinese memory maker ChangXin Memory Technologies also made a strong stock market debut.

Industry and policy ties with U.S. companies have expanded. The chiefs of Samsung, SK and Hyundai joined President Lee Jae Myung in San Francisco last week and announced planned collaborations worth hundreds of billions of dollars with OpenAI, Anthropic, Nvidia and Broadcom, spanning chips, data centers and other AI infrastructure. In a briefing, presidential policy adviser Kim Yong‑beom described a rush by global tech firms to secure long‑term memory supply through partnerships with South Korean producers.

Samsung reiterated that demand for server chips should accelerate in coming quarters, supporting pricing and shipments. The company plans to keep production aligned with customer roadmaps for advanced memory, including high‑bandwidth products used in AI training and inference.