Samsung Electronics is expected to report an 18-fold jump in operating profit for the second quarter of 2026, as surging global demand for artificial intelligence (AI) infrastructure continues to fuel an unprecedented boom in the memory chip industry. According to market estimates, the South Korean technology giant is likely to post operating profit of around 86 trillion won (approximately $56.35 billion) for the April–June quarter, compared with 4.7 trillion won during the same period last year.
If the estimates are confirmed, it would mark Samsung’s third consecutive quarter of record-breaking operating profit, highlighting the ongoing shortage of memory chips worldwide. Analysts believe demand for AI-powered data centres and cloud computing infrastructure continues to outpace global supply, allowing memory manufacturers to command significantly higher prices for their products.
The company’s remarkable earnings growth is being driven not only by High-Bandwidth Memory (HBM) chips used in advanced AI servers but also by rising demand for traditional DRAM and NAND flash memory. As artificial intelligence applications become increasingly sophisticated, particularly with the rise of agentic AI systems capable of performing complex multi-step tasks, data centres require substantially more memory capacity and storage than previous generations of AI technologies.
Unlike earlier AI models primarily focused on training large language models, newer AI systems require continuous data retrieval and processing during inference, placing greater demand on both server memory and storage solutions. This shift has significantly benefited leading memory manufacturers such as Samsung, which supplies chips to major global technology companies including Nvidia, Google and Apple.
Market research indicates that memory prices have risen sharply during the quarter. According to analysts, average selling prices for DRAM increased by approximately 44%, while NAND flash memory prices climbed around 53% compared with the previous quarter. The sustained supply shortage has also triggered an extraordinary rally in semiconductor stocks this year, with shares of Samsung Electronics, SK Hynix and Micron Technology posting triple-digit gains, pushing the market value of all three companies beyond the $1 trillion mark.
Despite the strong business environment, analysts caution that Samsung’s reported earnings could fall slightly below market expectations if the company records a larger-than-anticipated provision for employee bonuses. Earlier this year, Samsung reached a wage agreement with its semiconductor workforce, allocating 10.5% of the chip division’s operating profit toward special employee bonuses after avoiding a large-scale strike. Some analysts estimate that cumulative bonus-related provisions could exceed 40 trillion won, making accounting treatment a key factor influencing reported quarterly profits.
Looking ahead, industry experts believe the biggest risk to the current memory boom lies in a potential slowdown in AI infrastructure investment. While demand remains exceptionally strong today, analysts are closely monitoring whether cloud service providers can continue allocating an increasingly large share of their capital expenditure toward AI hardware. Some estimates suggest memory-related spending could account for more than 70% of AI infrastructure investment next year, raising questions about the long-term sustainability of such rapid growth.
Samsung has already announced long-term supply agreements with several major customers to secure future memory chip demand, although it has not disclosed specific client names or contract values. Meanwhile, both Samsung and rival SK Hynix have unveiled massive investment plans to expand semiconductor manufacturing capacity in South Korea over the coming years to meet anticipated AI-driven demand.
However, rising memory prices are also creating challenges for Samsung’s own smartphone business. Higher component costs have begun squeezing profit margins despite recent handset price increases. Analysts believe the company may need to introduce further price hikes during the second half of 2026 if memory prices continue climbing, following similar pricing moves recently announced by competitors such as Apple for several of its products.
With AI adoption accelerating across industries and memory supply expected to remain tight well into next year, Samsung appears well-positioned to continue benefiting from one of the strongest semiconductor market cycles in recent history.
Disclaimer: This report has been editorially prepared using publicly available information and agency inputs. While every effort has been made to ensure accuracy, unintentional errors or omissions may occur. Readers are encouraged to verify critical information from official sources.
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