– This is the script of CNBC’s financial news report for China’s CCTV on JULY 07, 2026.
One of the most striking details in Samsung’s latest earnings report is that its operating profit significantly exceeded market expectations. Preliminary data shows that for the three months ending in June, Samsung’s operating profit reached 89.4 trillion won, or roughly 396.936 billion yuan, representing a year-over-year surge of about 1,810%.
This figure topped the average analyst estimate of 84.2 trillion won and exceeded the company’s performance for the entire year of 2025. Additionally, quarterly revenue reached 171 trillion won, higher than the market consensus of 169.2 trillion won. Samsung is expected to release its full earnings report around the end of this month, detailing net profit and performance across individual business divisions.
Analysts point out that the ongoing shortage of AI memory chips remains a key tailwind supporting earnings for Samsung and other memory chipmakers. With demand for AI data centers continuing to grow, the market expects this tight supply situation could persist through 2027.
Under this supply-demand balance, HSBC data indicates that from April to June in the second quarter, average selling prices for DRAM, or dynamic random-access memory, rose by more than 40% quarter-over-quarter, while NAND flash memory prices climbed by over 50%.
However, looking at the market reaction, Samsung shares fell sharply after the South Korean stock market opened today. As of around 9:00 AM Beijing time, Samsung’s stock dropped by roughly 6.3%, dragging down the broader South Korean index.
Analysts note that a key detail to keep in mind is that this massive jump in Samsung’s operating profit was primarily driven by memory chip price hikes rather than significant shipment volume growth.
Rolf Bulk
Head of Semiconductor & Infrastructure
Futurum
“Memory pricing are on an upward trajectory, purely driven by the demand for AI, and then we also have supply Samsung, Hynix, Micron remaining very constrained in their ability to manufacture more chips. They go as fast as they can, but the reality is that this is a supply-constrained market.”
Consequently, voices in the market are questioning the quality of Samsung’s earnings growth and expressing concern over how long the price-hike dividends in the memory chip industry can last. Analysts explain that for memory manufacturers operating in a supply-constrained environment, profit margins are easily inflated by rising prices. However, with multiple suppliers accelerating expansion, the eventual release of new capacity has raised fears of an inflection point in chip prices, which could threaten current high margins.
Underpinning these concerns is a broader reassessment by investors of the entire AI investment surge. The market is attempting to judge how long high capital expenditures and elevated valuations surrounding AI can be sustained. Earlier this year, global semiconductor-related stocks touched record highs, but they have since experienced sharp volatility due to rising concerns over intensifying competition, potential overcapacity, and whether massive AI investments will yield real returns.
