Samsung Electronics has announced a staggering 1,800% jump in operating profit for the first half of 2026, fueled by explosive demand for its advanced memory chips used in artificial intelligence systems. The South Korean tech giant estimates an operating profit of 89.4 trillion won (approximately $58.4 billion) for the period, compared to the same timeframe last year.
Revenue also soared, with the company projecting sales of 171 trillion won in the quarter—a 129% increase year-over-year. Samsung plans to publish its full results later this month.
The earnings highlight a dramatic shift in the semiconductor landscape driven by the global AI boom. Data centers and AI systems require high-performance memory chips, and supply remains tight, enabling Samsung and rival SK Hynix to raise prices and boost margins.
Marc Einstein of Counterpoint Research called the estimate “among the best quarterly performances ever,” attributing the surge entirely to AI demand. Samsung is one of the world’s largest memory chip makers and supplies key players like NVIDIA and Google.
According to IDC, the memory industry is experiencing a unique demand cycle concentrated in data center and AI infrastructure, which is expected to keep chip supplies tight for the next year. IDC analyst Bryan Ma noted that strong AI-related demand will continue to pressure supply.
Despite the robust earnings forecast, Samsung’s shares fell 7% to 8% in Seoul trading, as some investors had anticipated even higher profits. However, the company’s market value has doubled since the start of the year, and SK Hynix has surged over 200%.
South Korea’s Kospi index has risen more than 80% in 2026, driven by chip makers. The government recently announced plans to invest at least $880 billion in Samsung and SK Hynix-related projects to expand chip production. Analysts caution that the key risk is whether AI memory demand will sustain beyond next year.
For now, Samsung remains a top beneficiary of the global AI infrastructure race.