Samsung Electronics has overtaken Nvidia to become the world’s most profitable technology company by quarterly operating profit, marking a major shift in the artificial intelligence (AI) semiconductor race.
The South Korean electronics giant expects to report an operating profit of 89.4 trillion won (approximately $58.5 billion) for the second quarter of 2026 (April–June), surpassing Nvidia’s previous quarterly operating profit record of around $53.5 billion. The milestone comes as demand for high-bandwidth memory (HBM), DRAM, and NAND chips continues to surge, driven by rapid AI infrastructure investments worldwide.
Samsung’s record-breaking earnings are largely attributed to the ongoing AI boom, which has significantly increased demand for memory chips used in AI servers, data centres, and advanced computing systems.
Industry analysts say tight supply and rising prices for DRAM and NAND memory have helped Samsung’s semiconductor business deliver unprecedented profitability. According to Reuters, average memory chip prices have risen sharply this year as cloud providers and AI companies continue expanding their computing infrastructure.
The company is also one of the major suppliers of memory chips to leading AI companies, including Nvidia, strengthening its position in the global semiconductor supply chain.
While Nvidia continues to dominate the AI accelerator GPU market, Samsung’s strength in memory semiconductors has helped it outperform the U.S. chipmaker in quarterly profitability.
Samsung’s estimated operating profit of 89.4 trillion won exceeds Nvidia’s previous record operating profit of roughly $53.5 billion, making Samsung the most profitable technology company globally for the quarter.
The result also reflects how the AI boom is benefiting not only GPU manufacturers but also companies supplying the memory chips essential for training and running large AI models.
FAQs
- Why did Samsung surpass Nvidia in quarterly profits?
Samsung’s strong earnings were driven by soaring demand for AI memory chips, particularly high-bandwidth memory (HBM), DRAM, and NAND, which are essential for AI servers and data centres. - How much operating profit did Samsung report in Q2 2026?
Samsung estimated an operating profit of around 89.4 trillion won (approximately $58.5 billion) for the April–June 2026 quarter, marking a record performance. - What role does AI play in Samsung’s earnings growth?
The rapid adoption of artificial intelligence has increased demand for advanced memory chips used in AI infrastructure, significantly boosting Samsung’s semiconductor business. - Does this mean Samsung is bigger than Nvidia?
Not necessarily. The report refers to quarterly operating profit. Nvidia continues to lead the AI GPU market, while Samsung dominates the memory chip segment that powers AI systems. - What does Samsung surpassing Nvidia mean for the semiconductor industry?
It highlights the growing importance of memory chip manufacturers in the AI ecosystem and shows that the AI boom is benefiting multiple segments of the semiconductor industry, not just GPU makers.
