Samsung Q2 earnings beat profit estimates on AI chip demand
Samsung posted 89.4 trillion won in second-quarter operating profit, above LSEG estimates, as AI demand lifted its memory business.
By Marcus V. Thorne · Markets Editor
· 2 min read
Samsung Q2 earnings showed operating profit ahead of analyst expectations, with the South Korean electronics group reporting 89.4 trillion won for the second quarter against 88.13 trillion won expected, according to LSEG SmartEstimates cited by CNBC. Revenue came in at 171 trillion won, below the 172.65 trillion won estimate.
The results extend what CNBC described as Samsung Electronics’ record profit run, supported by demand tied to artificial intelligence and its effect on the company’s memory chip operations. Memory chips are a central component in AI computing infrastructure, and stronger spending on AI systems can increase demand for suppliers that produce them.
LSEG SmartEstimates gives more weight to analysts with stronger historical accuracy, according to CNBC. Against that benchmark, Samsung’s profit outperformance contrasted with a modest revenue shortfall, pointing to stronger profitability even as sales came in below consensus.
What drove Samsung Q2 earnings?
CNBC attributed the profit beat to continued strength in AI-related demand for memory chips. Samsung is one of the world’s largest memory suppliers, and the AI investment cycle has increased focus on chipmakers whose products are used in data centers and advanced computing systems.
The company had signaled the strength earlier in July. According to a July 7 forecast cited by CNBC, Samsung projected that second-quarter operating profit would rise by roughly 19 times from the same period a year earlier, helped by sustained demand for memory chips linked to AI.
The figures also underscore the uneven way the AI spending cycle is appearing in corporate results. Samsung’s operating profit exceeded expectations, while revenue fell short of the LSEG SmartEstimates figure. The combination suggests investors and analysts may focus on margins, product mix and the contribution from memory chips when assessing the quarter.
How did Samsung compare with expectations?
Revenue: 171 trillion won, compared with 172.65 trillion won expected, according to LSEG SmartEstimates cited by CNBC.
Operating profit: 89.4 trillion won, compared with 88.13 trillion won expected, according to the same estimate set.
The earnings update comes as global technology companies continue to increase spending on AI infrastructure. For chipmakers, that spending has translated into stronger demand for components used in servers and data centers, particularly memory products that support high-performance computing workloads.
CNBC also listed shares linked to Samsung Electronics and SK Hynix as lower in the session it displayed, with Samsung’s quoted line down 1.11% and SK Hynix down 0.81%. The share moves were presented alongside the earnings coverage and do not by themselves indicate the reason for the declines.
This story draws on original reporting from CNBC.
