Samsung posts record profit as AI memory demand reshapes chip market

Samsung Electronics divulged on Thursday (July 30) that it earned KRW 89.5 trillion in operating profit in the second quarter, boosted mainly by memory chips used in AI data centers. Its consolidated revenue increased significantly to KRW 171.5 trillion, an increase of 28% on the previous quarter, per the company’s earnings report.

The timing is significant as SK hynix and Micron Technology have both come up with reports of record quarters within days of each other, reiterating the same theme that the boom in AI infrastructure is increasingly benefiting the companies providing the memory used in sophisticated AI systems.

The findings also bring to the fore another issue for investors. There is no doubt that artificial intelligence has changed the demand for memory but the question is now whether price, supply limits and consumer expenditure will continue to be sufficient to support the semiconductor valuations.

Memory is carrying Samsung, mobile is not

Samsung’s financial performance proves how much AI has impacted its business model.

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