Samsung Electronics' profits jumped 19-fold in the second quarter of 2026, exceeding its combined profits over the past three years, but investors wiped $100 billion off its market value amid concerns related to the AI-linked chip boom.
According to preliminary earnings results, the South Korean company recorded operating profits of 89.4 trillion won ($58.44 billion) in the period from April to June, exceeding expectations of 87.3 trillion won, and an increase of 1181% over the same period of the previous year.
Samsung projected operating profits of 43.6 trillion won for the full year 2025. Second-quarter profits alone are estimated to be more than double the company's operating profits for the previous year.
Meanwhile, revenues rose 129% to 171 trillion won, up from 133.9 trillion won during the same period in 2025.
If confirmed, this would mark Samsung's third consecutive quarter of record revenue and operating profit since the fourth quarter of last year.
The strong performance is widely attributed to the continued growth of global investments in artificial intelligence infrastructure, which exacerbated the shortage of semiconductors and kept memory chip prices high.
The results include deducting exceptional expenses related to employee bonus allocations. Earlier this year, the company agreed to eliminate the 1000% cap on employee bonuses and allocate 10.5% of its operating profits for bonus payments, responding to union demands after weeks of protests calling for employees to receive a fair share of the company's profits.
Despite the strong results, Samsung Electronics' stock fell by about 10.6%, and analysts attributed the stock's poor performance to concerns about the potential failure of the AI data center rollout.
