Samsung Electronics reported a remarkable rise in operating profit for the second quarter, with figures reaching 10.4 trillion won (approximately $7.5 billion), marking an impressive 1,452.2% increase compared to the same period last year. The surge is attributed to a robust recovery in the memory chip sector following a prolonged slump. Additionally, revenue soared by 23.3%, amounting to 74 trillion won for the quarter.
These preliminary results were disclosed in Samsung’s quarterly earnings guidance, with full financial details, including net profit, expected later this month during an analyst and investor conference call.
Despite this strong performance, Samsung continues to trail behind its domestic competitor, SK Hynix, in the high-bandwidth memory (HBM) sector, crucial for advanced AI applications. SK Hynix currently supplies HBM chips to Nvidia, a key player in AI computing, while Samsung is undergoing a qualification process to become a supplier, with the timeline for approval still uncertain.
This profit resurgence follows a significant management change in Samsung’s semiconductor division in May, where Jun Young-hyun replaced Kyung Kye-hyun. The division had been struggling with substantial losses amid the memory chip market downturn under the previous leadership.
The market anticipates that the new management team will address past missteps and regain competitiveness in the HBM market, driving mid- to long-term improvements for Samsung’s semiconductor business.
