Samsung Posts Record Quarterly Profit on AI Memory Chip Demand
Samsung Electronics reported record quarterly earnings, driven by strong demand for AI memory chips, surpassing Nvidia in quarterly operating profit and beating market expectations.
SociapaHQ
Samsung Electronics has posted record quarterly profits, buoyed by strong demand for artificial intelligence (AI) memory chips, which helped the company beat Nvidia in quarterly operating profit.
Samsung Electronics reported an operating profit of 89.4 trillion won ($64.5 billion) for the April-June quarter, sharply up from 4.7 trillion won during the same period last year. The result also beat market expectations.
Quarterly revenue rose to a record 171 trillion won ($123.4 billion), aided by continued momentum at the company’s semiconductor business.
Also Read: Burger King India Operator Gets New Owners After Inspira Global Acquisition
AI Boom Fuels Growth:
According to preliminary results, Samsung has surpassed Nvidia’s reported quarterly operating income, becoming the most profitable technology company for the quarter.
The earnings also beat Samsung’s own previous quarterly operating profit record, underscoring the impact of rising global investments in AI infrastructure.
Demand for high-bandwidth memory, or HBM, server DRAM and NAND flash memory drove the company’s performance. These memory products have become critical components for AI servers and large data centers that power generative AI applications.
Also Read: WhatsApp Unveils Meta Business Agent AI for Businesses
Strong Underlying Performance:
Samsung said the reported figures include special employee bonuses agreed with its labour union.
Analysts noted that these payments likely accounted for a significant portion of the company's quarterly expenses, suggesting that Samsung's underlying operating performance may have been even stronger than the reported numbers indicate.
