Samsung Stock Jumps Over 6% In Seoul as AI Memory Business Delivers Record Profit: 'Supply Constraints' Expected to Continue

Samsung Electronics Co.

Ltd. ‘s (OTC: SSNLF ) shares rose on Thursday after the chipmaker posted a record second-quarter operating profit as surging artificial intelligence memory demand boosted its semiconductor business, though higher component costs weighed on earnings in its mobile division.

Operating Profit Beat Estimates Operating profit climbed to a record 89.5 trillion KRW ($61.93 billion) for the second-quarter, beating the 88.13 trillion KRW ($60.98 billion) analysts’ forecast compiled SmartEstimates.

Revenue reached a record 171.5 trillion KRW ($118.70 billion) but fell short of the 172.65 trillion KRW ($119.49 billion) consensus.

The results were driven by the device solutions division, where the memory business delivered another record quarter as strong AI server demand and higher memory prices offset ongoing supply constraints.

Read Also: Trump Orders Strikes on Iran After Missile Attack: Dow Futures Gain 94 Points, Brent Hovers Near $90 AI Memory Demand Continues to Drive Growth Samsung said robust demand for server DRAM and HBM products, fueled by continued AI infrastructure spending, drove another record quarter for its memory business despite persistent supply constraints. “Despite efforts to increase production, supply constraints are expected to continue,” the company said.

Its expectations for continued AI-driven server memory demand in the second half mirror comments from rival SK Hynix Inc. (NASDAQ: SKHY ), which on Wednesday said it does not expect a near-term memory oversupply, though it missed analysts’ estimates.

Investor concerns over a future memory glut have intensified as chipmakers expand AI memory capacity, but Samsung, SK Hynix and Micron Technology Inc (NASDAQ: MU ) say multi-year supply agreements and strong AI infrastructure spending continue to support demand.

Samsung holds about 39% of the global DRAM market, ahead of SK Hynix and Micron.

Higher Component Costs Pressure Mobile Business Samsung’s Mobile eXperience and Networks division reported an operating loss of 0.7 trillion KRW ($483 million), despite stronger year-over-year sales of the Galaxy S26 and Galaxy A series smartphones.

The company said higher component costs across the industry weighed on earnings, offsetting stronger handset sales.

Price Action: Seoul-listed shares of Samsung fell as much as 3.1% to a low of 202,000 KRW ($139.62), but gained 5.52% at the time of writing.

The benchmark index KOSPI was up 4.44% after a 33% slump this month. edge rankings indicate SKHY has a Value score in the 51st percentile and a Growth score in the 97th percentile.

Read Also: Sam Altman Says OpenAI Will Be 'Greatest and the Cheapest' as Kimi K3 Heats Up AI Race Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published editors.

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