Samsung Electronics posted a near-1,300 per cent year-on-year jump in net profit for the April–June 2025 quarter, driven by surging global demand for AI-related semiconductors that more than offset softer performance in its mobile division. The South Korean tech giant reported net profit of 71.62 trillion won (approximately US$49.6 billion), up from 5.11 trillion won in the same period a year ago.

Record-Breaking Financials

Operating income for the second quarter soared 1,813.8 per cent on-year to 89.49 trillion won, while total sales climbed 130 per cent to 171.49 trillion won. Earnings per share reached 10,849 won for both common and preferred shares — up 52 per cent from the previous quarter — placing Samsung among the highest EPS performers in the global technology sector.

The results marked the third consecutive quarter of record revenue and operating profit for the world's largest memory chipmaker, and came broadly in line with analyst expectations. The average analyst estimate for net profit stood at 71.21 trillion won, according to a financial data survey.

AI Chips Drive the Semiconductor Surge

Samsung's semiconductor division was the primary engine of growth, logging record quarterly sales of 127.5 trillion won and operating profit of 89.2 trillion won. The company attributed this performance to continued expansion in global AI infrastructure investment, which has tightened memory chip supplies and kept prices elevated.

Capital expenditure for the quarter totalled 16.8 trillion won — up 5.5 trillion won from the previous quarter — with 15.4 trillion won directed at the chip division and 700 billion won allocated to the display business. This signals a clear strategic prioritisation of semiconductor capacity as AI demand accelerates.

Outlook: Strong Demand Expected Through 2026

'In the second half of this year, the memory business expects robust demand centred on servers stemming from continued AI infrastructure capex and broader adoption of agentic AI,' the company stated. Samsung further noted during a conference call that 'the supply-demand gap is expected to widen further next year compared with this year,' a signal that pricing conditions remain favourable.

Industry observers broadly agree that the global chip market will remain buoyant through at least 2026, underpinned by hyperscaler spending on data centres and the proliferating deployment of AI models across enterprise and consumer segments.

Strategic Priorities for H2

Looking ahead, Samsung said it plans to optimise its product mix across both DRAM and NAND flash memory in response to shifting customer requirements. The company also expects its foundry business — which competes with TSMC — to see more substantial profitability improvements in the second half as it reshapes its portfolio toward high-growth segments. This comes amid ongoing pressure on Samsung's foundry unit to close the technology gap with leading rivals.