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Samsung's Second-Quarter Profit Surges 14-Fold as Revenue Soars 130% on AI Boom

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Samsung's Second-Quarter Profit Surges 14-Fold as Revenue Soars 130% on AI Boom

Samsung Electronics (KRX:005930) reported a 1,344% year-over-year surge in attributable net profit in the second quarter as revenue more than doubled, owing to strong demand for its memory products amid the artificial intelligence boom.

Net profit attributable to shareholders jumped 14-fold in the second quarter to 71.27 trillion won from 4.934 trillion won a year earlier, according to a filing with South Korea's Financial Supervisory Service on Thursday.

Earnings per share for both common and preferred shares rose 52% to 10,849 won, according to a separate press release the same day.

The South Korean tech company posted a 130% year-over-year jump in revenue to 171.5 trillion won from 74.57 trillion won a year prior.

Operating profit skyrocketed 1,814% to 89.5 trillion won from 4.68 trillion won.

Samsung said the results were primarily driven by its Device Solutions (DS) unit, which posted a 57% quarter-over-quarter increase in sales as its Memory Business set an all-time high for quarterly revenue and operating profit.

"The Memory Business achieved another record-breaking quarter by proactively addressing AI demand despite limited capacity with a primary focus on server products. The continued industry-wide upward trend of prices also contributed to the record earnings," Samsung said.

The Device eXperience (DX) division, which covers its consumer-facing products like smartphones, TVs and appliances, posted a 9% quarterly drop in sales due to higher component costs.

The company expects rising material costs and soft consumer demand to persist in the second half. However, for the same period, Samsung expects "double-digit revenue growth" amid rising demand for its chips from customers in the US and China.

The company plans to ramp up production of new mobile products based on the second-generation 2nm process in the second half.

Samsung's shares are down more than 1% in early-morning trade in Seoul Thursday.

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