Samsung Q2 earnings beat profit estimates as AI chip demand lifts memory
Samsung reported 89.4 trillion won in operating profit, ahead of LSEG estimates, while revenue came in below expectations.
By Dev Ramirez · Crypto Correspondent
· 2 min read
Samsung Q2 earnings gave investors another read on the AI chip trade: profit came in ahead of analyst expectations, according to CNBC. The South Korean electronics company benefited from demand tied to artificial intelligence, which CNBC said supported growth in its memory-chip business.
Samsung reported second-quarter operating profit of 89.4 trillion won, above the 88.13 trillion won expected by analysts in LSEG SmartEstimates, CNBC reported. Revenue was 171 trillion won, below the 172.65 trillion won analysts expected.
LSEG SmartEstimates gives more weight to forecasts from analysts with stronger records of accuracy, according to CNBC. That makes the comparison a useful snapshot of how the company performed against the market’s more closely watched expectations.
What did Samsung report in Q2 earnings?
Revenue: 171 trillion won, versus 172.65 trillion won expected, according to LSEG SmartEstimates cited by CNBC.
Operating profit: 89.4 trillion won, versus 88.13 trillion won expected.
CNBC reported that demand connected to artificial intelligence helped Samsung’s memory-chip business.
The results continue what CNBC described as Samsung’s record profit run. For retail investors following the AI supply chain, Samsung is one of the companies whose earnings can show whether spending on AI infrastructure is still flowing through to chip suppliers.
Memory chips are semiconductors that store data in devices and computing systems. In Samsung’s case, CNBC linked the strength in profit to AI-related demand for those chips, a key area for the company’s semiconductor operations.
The company had already signaled a strong quarter earlier in July. Samsung forecast on July 7 that second-quarter operating profit would rise by roughly 19 times from the year-earlier period, helped by continuing demand for memory chips used in AI, according to the AFP photo caption carried by CNBC.
The headline number was profit, not sales. Revenue missed the analyst estimate, while operating profit beat, meaning Samsung generated more profit than expected even though its top line was slightly below consensus. Operating profit is the money a company makes from its core business after operating costs, before items such as taxes and some financing costs.
Samsung’s report also lands as investors keep watching whether AI spending is translating into actual earnings for hardware companies. CNBC’s figures show that, for this quarter, Samsung’s profit beat expectations while the company’s revenue fell short of them.
This story draws on original reporting from CNBC.
