Samsung Posts 250-Fold Chip Profit Jump, Warns Memory Shortage Extends to 2028
Samsung Electronics posted a roughly 250-fold jump in operating profit for its semiconductor division during the second quarter, driven by unrelenting demand for artificial intelligence memory chips. The company warned that the global supply shortage will persist through 2028, as expanding new fab capacity takes more than three years to materialize and agentic AI workloads continue to outpace current production capabilities.
To manage the extended tightness, Samsung plans to allocate 60% to 70% of its total manufacturing capacity to long-term supply agreements with major cloud providers and AI infrastructure customers. These multi-year contracts, which include substantial advance payments, will lock in baseline demand and protect the company against the cyclical downturns that have historically defined the memory market.
From the sources (25 posts)
@polymarketBREAKING: Samsung’s Q2 operating profit surges +1,800% to a record high amid booming AI chip demand.
@jukan05<Samsung Electronics 2Q26 Earnings Review> Revenue: KRW 171.5 trillion (+130.0% YoY, 1.7% below consensus) Operating profit: KRW 89.5 trillion (+1,813.8% YoY, 5.5% above consensus) Operating margin: 52.2% (+45.9ppt YoY, above expectations)
@jukan05From Samsung Electronics Q2 Earnings Call Q: Do you expect the current memory shortage to persist into next year? If possible, could you also share your medium- to long-term outlook for memory demand? A: The rapid acceleration of agentic
@jukan05Samsung Electronics 2Q26 Earnings Call Q&A Q. Could you provide an update on LTAs? A. Regarding multi-year memory supply agreements, demand for securing medium- to long-term AI service infrastructure is surging, while the market increasin
@jukan05Samsung Electronics Q2 Earnings Call Q&A Q. What is the supply mix between HBM and conventional DRAM? As stated during our previous earnings call, we manage our product mix independently of differences in profitability, with a focus on ca
@jukan05Samsung Electronics Q2 Earnings Call Q&A Q. Is Samsung considering an ADR listing? An ADR listing would go beyond simply listing shares in an overseas market, potentially providing benefits such as access to capital and a broader investor
@dnystedtRT @StockSavvyShay: SAMSUNG Q2 EARNINGS • Revenue: $118.1B vs. Est. $119.2B (+130% YoY) • Operating profit: $61.7B vs. Est. $60.8B (+1,814…
@jukan05Samsung Electronics 2Q26 Earnings Call Q&A Q. Growing demand for AI memory is driving strong growth in enterprise SSDs, drawing greater attention to the NAND market. What is the current state of Samsung’s NAND business, and what are its co
@zephyr_z9RT @jukan05: From Samsung Electronics Q2 Earnings Call Q: Do you expect the current memory shortage to persist into next year? If possible…
@stocksavvyshaySamsung says unmet memory demand will carry into next year making the 2027 shortage “even more severe” with tight supply likely lasting into 2028. Please keep selling $MU and $SKHY 😅
@firstadopterWE ARE SO BACK! This sounds VERY GOOD for memory chip companies. Samsung Electronics (h/t @jukan05 ): "Based on the demand visibility we currently have from customers, a substantial amount of unmet demand will roll over into next year, cre
@firstadopterWhy do these memory stocks have forward P/Es of 4 if the 2027 memory shortage is going to be worse than the 2026 one? It's almost as if the stocks are down primarily this month on forced dislocation selling from over-leveraged hedge funds
@zephyr_z9RT @jukan05: SAMSUNG ELECTRONICS: WE PLAN TO ALLOCATE 60–70% OF OUR TOTAL CAPACITY TO LTAS.
@zephyr_z9"2nm projects from a major CSP customer and HPC customers." 🤔🤔🤔
@jukan05SAMSUNG ELECTRONICS: WE PLAN TO ALLOCATE 60–70% OF OUR TOTAL CAPACITY TO LTAS.
@techmemeSamsung reports Q2 revenue up 130% YoY to ~$118.1B, vs. ~$118.9B est., and operating profit up 1,814% to ~$61.46B, vs. ~$60.68B est., on robust AI demand (Jenny Lee / CNBC) (Visit Techmeme dot com for the link and full context!)
@firstsquawkSamsung Electronics says supply constraints remain as demand outpaces production for 2nm chips.
@firstsquawkSamsung Electronics confirms that minimum pricing arrangements are included in long-term supply contracts.
@firstsquawkSamsung Electronics says numerous customers are seeking multi-year supply deals.
@firstsquawkSamsung Electronics reports that NAND was a key contributor to memory business growth in Q2.
@firstsquawkSamsung Electronics says it maintains long-term supply agreements with leading NAND customers.
@firstsquawkSamsung Electronics says its HBM share is expected to match overall DRAM market share during the second half.
@firstsquawkSamsung Electronics stock gains 7% in trading.
@firstsquawkSamsung Electronics' smartphone shipments rise in Q2 from the previous quarter.
@firstsquawkSamsung Electronics' foundry division receives 2nm process orders from cloud service companies.