Samsung Electronics, South Korea’s technology giant and the world’s largest memory chip manufacturer, revealed its forecast for Q2 (April–June) operating profit to soar to 89.4 trillion won (approximately 1.95 trillion baht), an increase of 1,810% compared to the same period last year, when profit was only 4.7 trillion won.
At the same time, Samsung expects total revenue this quarter to grow 129%, reaching 171 trillion won. This figure exceeds analysts’ estimates from LSEG SmartEstimate and is viewed as the company’s highest quarterly profit ever, surpassing AI chip leader Nvidia. If maintained, Samsung could become the world’s top chip manufacturer.
Kim Dae-jong, a business management professor at Sejong University, said that the expanding global demand for advanced memory chips used in AI data centers is the main driver behind the massive profits of both Samsung and SK hynix. In this quarter, the average selling prices of DRAM and NAND chips rose by 44% and 53%, respectively, compared to the previous quarter.
This overwhelming demand has also caused a shortage of memory chips, leading manufacturers to focus on producing more profitable AI chips and reduce production of general-purpose chips used in smartphones and laptops, which may result in higher prices for everyday IT devices.
However, this leap in profit occurred despite Samsung setting aside substantial reserves to pay bonuses to semiconductor employees, as agreed in May to avoid strike actions. Analysts note that without this bonus deduction, Samsung’s operating profit might have already exceeded 100 trillion won.
Despite the impressive results, Samsung’s stock price plunged 7.9% in morning trading on Tuesday, with competitor SK hynix’s shares falling 7.3%, dragging South Korea’s KOSPI index down 6%.
Albert Young, portfolio manager at Petra Capital Management, explained that the market had already anticipated the profit news, with some investors expecting profits near 90 trillion won. Additionally, there is serious concern about the "sustainability of the AI boom" and risks that major U.S. tech companies might slow AI infrastructure investments due to labor, energy constraints, or debt burdens from projects yet to yield clear returns.
The semiconductor industry’s success is significantly impacting South Korea’s economy and society. The government plans to use increased tax revenue from Samsung and SK hynix to fund AI and large-scale chip development projects, as well as support housing and startup creation for younger generations.
Moreover, the chip boom has influenced daily life; images of SK hynix jackets have gone viral online as symbols of wealth and success. Meanwhile, prominent matchmaking company Sunoo reported that engineers and employees at Samsung and SK hynix now have a "marriage market desirability index" comparable to that of doctors and lawyers.
Samsung is scheduled to officially announce detailed earnings by business segment on 30 July. The company recently unveiled plans to invest 210 trillion won in South Korea through 2040 but indicated adjustments may be made depending on future market conditions.