The South Korean giant anticipates a record operating profit, but its shares fall in Seoul, amid uncertainties regarding the sustainability of demand for chips for artificial intelligence.
The Samsung Electronics group announced on Tuesday that it expects an operating profit multiplied by 19 in the second quarter of 2026, driven by the surge in global demand for semiconductors intended for artificial intelligence (AI). This result, which promises to be the most important in the group’s history, contrasts with the negative reaction of the Seoul Stock Exchange and raises questions about the duration of this boom.
A historic benefit, driven by AI
The operating profit of South Korean giant Samsung Electronics increased 19-fold in the second quarter of 2026. The expected operating profit for the period from April to June amounts to around 89.4 trillion won (51 billion euros), an increase of 1,810.3% year-on-year. This is the biggest result in its history. Samsung’s quarterly turnover is expected to increase 129% year-on-year to 171,000 billion won (98 billion euros).
This estimate exceeds market forecasts by 6.2% and marks a new quarterly record, according to the South Korean news agency Yonhap. The final figures will be published at the end of the month.
Strong global demand for advanced memory chips used in AI data centers is a boon for major South Korean manufacturers, who are racking up record profits and boosting their country’s economic growth. To prioritize the lucrative AI sector, semiconductor makers are cutting production of less sophisticated chips used in consumer electronics, such as phones and laptops, driving up device prices.
The announcement of the preliminary results was paradoxically not welcomed on the Seoul Stock Exchange, where Samsung shares plunged 7% late Tuesday morning, on a market in sharp decline.
The big question going forward is “how long the demand for memory will last. The demand is essentially assured until next year, but beyond that, no one really knows,” continued Professor Kim Dae-jong.
The South Korean government on June 29 unveiled a colossal public-private plan, equivalent to more than 1 trillion euros in total over ten years, to build advanced semiconductor factories and data centers for AI. As part of this, 800,000 billion won (455 billion euros) must go to the construction of four new factories by Samsung Electronics and its rival and compatriot SK hynix in the relatively undeveloped region of southwest Korea.
The rise of semiconductors for AI in South Korea is also fueling debate over how to use windfall tax revenues from companies in the sector. Kim Yong-beom, South Korean President Lee Jae Myung’s senior policy secretary, proposed using the proceeds to support youth start-ups, fund basic income programs for rural and fishing communities, and help artists.
Jobs at Samsung and SK hynix now guarantee “a boost in the marriage market”, Yonhap reported, citing a rise in the “desirability ratings” of these jobs established by dating agency Sunoo.
