Samsung profits are up more than 19-fold year on year, and consumers are paying the price

Samsung Electronics has forecast its most profitable quarter to date, and one of the most profitable in the history of any tech company.

The South Korean company expects Q2 2026 operating profit of around KRW ₩89.4 trillion (roughly $84.5 billion) against a revenue of KRW ₩171 trillion (roughly $161.6 billion). Samsung profits have jumped 19-fold, while the revenue forecast is more than double what the company made in Q2 2025.

Put in perspective, this single quarter is worth more than Samsung’s operating profit for the entire year of 2025. Fully audited results will be released on 30th July, but this forecast will make Samsung one of the most profitable businesses on Earth this quarter.

How Samsung profits have risen so much

AI data center builds need memory, and there’s a shortage right now that has led to inflated prices. Samsung, along with SK Hynix and Micron, controls the global supply of DRAM and NAND flash chips required for data centers and electronics.

SK Hynix is profiting from the situation from a different angle. As the current leader in high-bandwidth memory (HBM), SK Hynix controls the lion’s share of the market for chips most in demand for AI accelerators.

Both companies have jointly flagged a domestic investment venture worth around USD $1 trillion to expand South Korea’s chip capacity, showing both companies expect the memory cycle to last for years.

AI is already hitting your wallet

The memory shortage causing inflated prices doesn’t just mean big profits for Samsung, but increased costs of electronics and consumer goods too.

Devices using flash storage and DRAM memory cost more. We’ve seen price increases on the Steam Deck at the same hardware level, while phones, laptops, and tablets also get more expensive as manufacturers pay more for the same components.

Analysts don’t expect meaningful price relief for the next few years, and in the meantime technology companies are seeking alternative measures to alleviate memory requirements. AMD’s recent acquisition of memory optimisation startup MEXT is one such example.

The AI boom means bigger profits than ever for businesses, but customers are stuck paying the price for inflated device costs.