Samsung Q2 operating profit jumps 1,814% on AI demand

Samsung Electronics said Thursday its April-to-June operating profit rose 1,813.8% from a year earlier to 89.49 trillion won, or $62 billion, as demand linked to artificial intelligence supported its memory chip business.

The South Korean company, described as the world's largest memory chipmaker, said in a regulatory filing that second-quarter revenue rose 130% to 171.49 trillion won. Net profit rose 1,299.9% to 71.62 trillion won.

Yonhap news agency said the earnings met market expectations, citing its financial data firm.

The results came after a sell-off in South Korean AI-linked chip stocks on Wednesday. Samsung shares fell more than 12%, while domestic rival SK hynix fell nearly 20% after a 14% drop the previous day.

Samsung, SK hynix and US firm Micron are leading makers of high-bandwidth memory chips used in AI processors. Analysts cited in the supplied material said investment in AI data centres was supporting demand for advanced memory chips, as well as prices and shipments of conventional NAND and DRAM chips.

Counterpoint analyst MS Hwang told AFP that Samsung's high-bandwidth memory business was having a positive effect on its foundry business, saying the company was using its position in memory to gain share across much of its business.