Seoul, July 7 (IANS) South Korea-based Samsung Electronics Co. on Tuesday estimated its second-quarter operating profit at nearly 90 trillion won (US$58.8 billion), marking another quarterly record as strong demand for artificial intelligence (AI)-related semiconductors boosted earnings.

The South Korean technology giant said operating profit for the April-June period is expected to total 89.4 trillion won, up 1,181 percent from a year earlier, according to its earnings guidance, reports Yonhap News Agency.

The estimate exceeded the average market forecast by 6.2 percent, according to Yonhap Infomax, the financial data arm of Yonhap News Agency.

The earnings outlook reflects provisions for employee bonuses. Excluding those provisions, quarterly operating profit is estimated to have reached around 100 trillion won.

Under a high-profile wage agreement reached in May, Samsung will grant a special semiconductor performance bonus equivalent to 10.5 percent of business performance earnings. The bonuses will be paid in company stock over at least 10 years and will be tied to performance targets for the company’s lucrative semiconductor business.

The provision for the bonuses is estimated at around 20 trillion won.

Samsung Electronics posted an operating profit of 43.6 trillion won for all of 2025. The estimated second-quarter profit alone is more than double the company’s full-year operating profit last year.

Second-quarter revenue is estimated to have risen 129.3 percent from a year earlier to 171 trillion won. Net profit was not included in the earnings guidance.

If confirmed, Samsung Electronics will have posted record quarterly revenue and operating profit for a third consecutive quarter since the fourth quarter of last year.

Samsung Electronics did not provide a detailed breakdown of earnings by business division, although its device solutions unit, which includes the semiconductor segment, is believed to have accounted for a dominant share.

The strong performance is widely attributed to continued growth in global investment in AI infrastructure, which has intensified the supply shortage of semiconductors and kept memory chip prices elevated.

Industry observers expect the favorable market conditions to continue at least through next year.

Samsung Electronics has been among the biggest beneficiaries of the AI supercyle, backed by the world’s largest memory chip production capacity.

Although some have recently raised concerns that the semiconductor industry’s rapid growth could peak in the near future, Samsung has continued to sign long-term supply agreements with major technology companies, while expanding production capacity to meet expected demand over the medium to long term.

The company has also expanded sales of higher-value products by becoming the first in the industry to begin mass production and shipments of sixth-generation high-bandwidth memory (HBM4) chips.

Memory chipmakers are prioritizing the development of high-end products to meet surging demand from AI data centers, resulting in tighter supplies of conventional dynamic random-access memory (DRAM) and NAND flash products as well.

Analysts expect the supply shortage to persist at least through 2027, strengthening the pricing power of Samsung and its rivals, SK Hynix Inc. and Micron Technology Inc.

In contrast, the device experience unit, which oversees Samsung’s consumer electronics and mobile businesses, is expected to have posted relatively weak results.

Reflecting the improving outlook for Samsung’s semiconductor business, the consensus forecast for the company’s full-year operating profit has risen to 37.4 trillion won from 36.6 trillion won, according to Yonhap Infomax.

The company will release its final earnings report later this month.

–IANS

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