Samsung Posts Record Q2 Profit on AI Chip Demand, Mobile Unit Suffers Loss

South Korean tech giant Samsung Electronics posted a record jump in its second-quarter operating profit for 2026, bolstered by strong demand for artificial intelligence (AI)-focused chips. The company announced an operating profit of 89.49 trillion Korean won (approximately $62 billion USD) for the April-June period, a 19-fold increase year-on-year. This impressive performance was driven by its semiconductor division's robust contribution from AI infrastructure investments, even as its mobile business reported its first quarterly loss due to rising costs.

The company's net profit also soared 14-fold from a year earlier to 71.26 trillion won (approximately $49.4 billion USD). Total revenue climbed 130% to reach 171.49 trillion won. Samsung's Device Solutions (semiconductor) division achieved record profits, posting an operating profit of 89.2 trillion won, fueled by surging demand for high-bandwidth memory (HBM), server DRAM, and enterprise storage products. This division alone accounted for over 99% of the company's total operating profit, marking a more than 250-fold increase compared to the previous year.

However, the company's Mobile eXperience (MX) business unit swung to an operating loss of 700 billion won (approximately $485.4 million USD), marking its first quarterly loss since records began in 2011. This downturn was attributed to soaring prices for key components such as DRAM and NAND flash memory, despite steady sales of its flagship Galaxy S26 series and mid-range A-series models.

Samsung's robust AI chip performance provided temporary relief to Asian semiconductor and technology stocks, which had recently been under pressure due to concerns about a potential slowdown in AI demand. The company's shares surged over 4% in early Seoul trading following the positive earnings report, helping the KOSPI index rebound. Nevertheless, external uncertainties, including the Federal Reserve's monetary policy and Middle East tensions, continue to weigh on markets.

These results highlight Samsung's deepening reliance on its semiconductor division for revenue generation, while also underscoring the urgent need to revive its mobile business. The ongoing global buildout of AI infrastructure is creating a significantly different landscape for memory chip markets compared to the downturn experienced just a year ago, solidifying the position of major players like Samsung.

Analysts and market expectations point to continued strong demand for servers in the second half of 2026. Ongoing AI infrastructure investments and the expanding adoption of agentic AI are anticipated to keep memory chip supplies tight. Samsung, in its statement, also expressed expectations for robust demand centered on servers, driven by sustained AI infrastructure spending, which is projected to keep the market undersupplied.