SEOUL, June 30 (AJP) - Samsung Electronics is widely expected to deliver another blockbuster quarter when it issues preliminary second-quarter earnings guidance next week, reflecting a 60 to 70 percent surge in mass-market memory prices and explosive demand for lucrative high-bandwidth memory (HBM) chips used in artificial intelligence.
According to market consensus compiled by FnGuide, Samsung is projected to post second-quarter revenue of 166.76 trillion won ($120.3 billion) and operating profit of 86.17 trillion won.
Samsung reported 57.23 trillion won in operating profit for the January-March period, up 756 percent from a year earlier, on revenue of 133.87 trillion won.
The outlook for an even stronger April-June performance gained further momentum after U.S. memory rival Micron Technology reported more than doubling quarterly profit, underscoring the strength of the global AI-driven memory cycle.
The world's largest memory chipmaker is expected to release preliminary second-quarter earnings guidance next week before announcing its full financial results later in July.
Market expectations have continued to climb over the past month, with consensus operating profit estimates rising about 6.5 percent and revenue forecasts increasing roughly 4.3 percent, reflecting stronger-than-expected memory pricing.
Kiwoom Securities recently lowered its second-quarter operating profit forecast to 89 trillion won from 100 trillion won, while maintaining its revenue estimate at 183 trillion won, citing larger-than-expected employee bonus provisions rather than weaker memory fundamentals.
TrendForce forecasts second-quarter DRAM contract prices to have risen 58 to 63 percent quarter on quarter, while NAND flash contract prices are expected to have jumped 70 to 75 percent, highlighting the strength of the memory market.
Analysts said continued investment in AI infrastructure by hyperscale cloud service providers is supporting demand for advanced memory products, particularly high-bandwidth memory (HBM), a critical component in AI accelerators.
Investors are also expected to focus on Samsung's HBM business for updates on customer qualification of its latest products by major AI chipmakers, as the company seeks to strengthen its position in the rapidly expanding AI memory market.
The breakdown of Samsung's semiconductor earnings will be disclosed with its full results later this month.
The Device Solutions division, which houses Samsung's semiconductor business, is expected to account for the overwhelming majority of the company's earnings, while its consumer electronics businesses, including smartphones and home appliances, continue to face pressure from rising component costs—ironically driven by the same memory price boom enriching the chip division.
Samsung Electronics is projected to generate about 363 trillion won in operating profit this year, more than enough to fund its planned 38.1 trillion won employee incentive program and 110 trillion won in capital expenditures.
The earnings outlook comes as Samsung joined SK hynix and the government on Monday in unveiling an ambitious expansion of South Korea's semiconductor industry. The company pledged 625 trillion won in investment over the next decade to build a second semiconductor manufacturing cluster in Gwangju, adding to the roughly 2,000 trillion won already committed to its Pyeongtaek campus and the Yongin semiconductor cluster.
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