Samsung's Profit In 2026 Will Exceed Its Cumulative Profit Generated Over The Past 40 Years!
Key Points:
- Samsung's DS division president Kim Yong-kwan announced that the company's operating profit for 2026 is expected to exceed the total cumulative profit earned over the past 40 years in its semiconductor business.
- Analysts anticipate Samsung's annual operating profit to reach around 300 trillion won (~$200 billion) in 2026, driven by significant price hikes in commodity DRAM products.
- Samsung has raised DRAM prices substantially in 2026, including a 90% increase in Q1 and an additional 50-60% hike in Q2, with further price negotiations ongoing for Q3.
- The company is projected to report a Q2 2026 operating profit of approximately 84.6 trillion won ($55.1 billion), potentially surpassing NVIDIA's Q1 operating profit and becoming the world's most profitable enterprise.
- Samsung and SK hynix are investing $800 billion to expand memory chip capacity, but new production is not expected until 2033, meaning high memory prices will likely continue due to strong AI-driven demand.