Samsung Electronics reports record second-quarter operating profit driven by surging demand for AI server chips
Samsung Electronics posted a record quarterly operating profit of 89.5 trillion won for the second quarter of 2026, marking a 1,814% year-on-year increase. The company's Device Solutions division, which manages memory chip operations, served as the primary engine for this growth, fueled by robust demand from AI servers. Samsung Electronics reported that AI server demand drove all-time high sales for DRAM and NAND chips, including the delivery of initial HBM4E samples to major customers. While the memory business thrived, the mobile and networks business recorded an operating loss of 700 billion won, as rising component costs squeezed margins despite solid sales of the Galaxy S26 and Galaxy A series. The company expects supply constraints to persist into 2027 as AI token generation accelerates. Looking ahead, Samsung Electronics anticipates continued strong demand for server memory in the second half of the year, supported by continued investment in AI infrastructure and the expansion of agentic AI. The company has already finalized agreements with its top five global data center customers.