Samsung forecasts its strongest chip earnings to date

by Alimat Aliyeva

A senior Samsung Electronics executive has expressed strong confidence in the company's financial performance, reinforcing expectations that the South Korean tech giant could report the highest quarterly operating profit ever achieved by a global technology company, AzerNEWS reports, citing Korean media.

Kim Yong-kwan, President and Head of Corporate Management, Strategy, and Operations for Samsung Electronics' Device Solutions (DS) Division, told employees during a town hall meeting last Friday that the company's operating profit for 2026 is expected to meet or even exceed market expectations, according to semiconductor industry sources.

Analysts currently forecast Samsung Electronics' annual operating profit to reach approximately 300 trillion won ($196 billion) this year, driven largely by surging demand for high-performance memory chips used in artificial intelligence systems.

"This year's profit will exceed the cumulative profit generated during the 40 years since Samsung entered the semiconductor business," Kim said, highlighting the scale of the company's expected earnings.

He also stressed Samsung's strong financial position, noting that the company generates substantial free cash flow and remains committed to aggressive investment.

"We have invested more than 40 trillion won every year, and we will continue to increase our investments," Kim said, signaling Samsung's determination to strengthen its leadership in AI chips, advanced memory, and next-generation semiconductor technologies.

Investors are now closely watching Samsung's preliminary second-quarter earnings, which are scheduled to be released on Tuesday. According to market consensus compiled by the AI-powered investment platform Epic AI, Samsung is expected to report an operating profit of 84.6 trillion won for the quarter.

If those estimates are confirmed, Samsung would surpass Nvidia's previous quarterly operating profit of $53.54 billion, setting a new record for the highest quarterly operating profit ever reported by a technology company.

South Korea's two semiconductor giants—Samsung Electronics and SK hynix—are also expected to deliver a combined quarterly operating profit of nearly 150 trillion won, an unprecedented milestone for the country's chip industry.

SK hynix, which is set to announce its earnings on July 29, is forecast to report an operating profit of 64.44 trillion won. If both companies meet expectations, their combined operating profit would total approximately 149 trillion won.

Despite the optimistic outlook, some analysts warn that semiconductor stocks could face increasing pressure if memory chip prices begin to weaken later this year. Investors will be paying close attention to the size and duration of long-term memory supply contracts, as well as pricing trends after the third quarter.

In a recent report, J.P. Morgan described the upcoming earnings season as a potential turning point for the global memory chip market, suggesting it could determine whether the current AI-driven boom remains sustainable.

Another key development investors are monitoring is SK hynix's planned American Depositary Receipt (ADR) listing in the United States. Analysts believe the move will improve access for international investors and increase the company's visibility in global financial markets.

Interestingly, the AI revolution has dramatically reshaped the semiconductor industry over the past two years. Explosive demand for high-bandwidth memory (HBM) chips—essential for training and running advanced AI models—has transformed companies like Samsung and SK hynix into some of the world's most profitable businesses, intensifying competition with rivals such as Nvidia, Micron Technology, and TSMC in the race to dominate the next generation of AI hardware.