Samsung’s Record Q2 Operating Profit Surpasses Nvidia

Samsung Electronics has potentially overtaken Nvidia to report the world’s largest quarterly operating profit among leading tech companies, achieving a monumental 89.4 trillion won ($58.6 billion) for the second quarter. This record-breaking performance was driven by an explosive surge in demand for advanced AI memory chips.

On Tuesday, Samsung announced its preliminary operating profit for the April-June period soared by an astounding 1,810.3 percent from the previous year. Revenue also saw a significant increase, jumping 129.3 percent year-on-year to an all-time high of 171 trillion won.

This impressive operating profit comfortably surpassed the market consensus of 84.16 trillion won, compiled by Infomax, by a notable 6.2 percent.

The latest figure marks a 56 percent increase from Samsung’s previous record of 57.2 trillion won, set in the first quarter, when it made history as the first Korean company to exceed 50 trillion won in quarterly operating profit.

Furthermore, the second-quarter profit alone eclipsed Samsung’s combined operating profit of 82.9 trillion won for the entire three-year period from 2023 to 2025.

These robust results position Samsung ahead of Nvidia’s previous record quarterly operating income of $53.5 billion for the fiscal first quarter ending April 26, as well as Apple’s recent peak. This underscores the profound shift in profitability within the global tech landscape, heavily favoring memory chip manufacturers amidst the escalating AI boom.

In the second quarter alone, Samsung generated more than double its entire 2025 operating profit, extending a remarkable record-breaking streak that began late last year. This unprecedented growth is largely attributed to surging investments in AI servers, which have significantly boosted prices for high-bandwidth memory (HBM), server DRAM, and conventional memory chips.

The exceptional outcome is particularly noteworthy considering Samsung also reflected provisions for special bonuses agreed upon with its labor union. Analysts estimate these bonus-related provisions, including retroactive payments for the first quarter, to be around 15 trillion won to 19 trillion won. Excluding these provisions, Samsung’s quarterly operating profit would likely have surpassed 100 trillion won.

While the company does not disclose divisional earnings in its preliminary guidance, the semiconductor division is widely believed to have contributed the overwhelming majority of Samsung’s profit. Analysts estimate the memory business alone generated operating profit in the 90 trillion won range, primarily driven by sharp price increases across both DRAM and NAND technologies.

With first-half operating profit now approaching 150 trillion won, industry analysts anticipate Samsung Electronics will comfortably exceed 350 trillion won in annual operating profit for this year.

This substantial earnings surprise comes at a time when investors have grown increasingly concerned that AI infrastructure spending by global tech companies might be nearing its peak. However, Samsung’s latest results strongly indicate that demand remains robust, particularly for high-performance memory chips, as the ongoing production of high-value AI components continues to tighten the supply of general-purpose DRAM and NAND.

Jung Min-gyu, an analyst at Sangsangin Securities, has forecast Samsung’s annual revenue at 738.4 trillion won and operating profit at 372.9 trillion won. He cites sustained demand from data center clients, despite growing cost pressures on device makers due to higher memory prices.

“While memory price increases are adding cost pressure on set customers, demand from data center clients remains exceptionally strong, and large-scale purchases are expected to continue throughout the period,” Jung stated.

Kim Yang-paeng, a senior researcher at the Korea Institute for Industrial Economics & Trade, suggested that this momentum is likely to persist through the end of the year. This assessment is based on companies reporting no meaningful slowdown in sales and sustained global investment in the sector.

In response to the AI-driven supercycle and the escalating demand for advanced memory, Samsung is preparing significant domestic investments, including the development of new fabrication plants (fabs) in Yongin and other strategic regions, as memory manufacturers globally race to expand production capacity.

Despite these record-breaking earnings, Samsung shares experienced a sharp decline on Tuesday, as investors raised questions regarding the sustainability of the AI-driven memory boom at its current accelerated pace. SK hynix also saw a drop, reflecting a broader trend of profit-taking among Korean chip stocks following a period of steep rally.

The company is scheduled to release its comprehensive second-quarter earnings report later this month, which will include detailed financial results broken down by business division.