Samsung Profit Surges as Tech Giant Predicts Memory Crunch Until 2028

Samsung Electronics has signaled a prolonged period of growth for the semiconductor industry, forecasting that the global chip crunch driven by artificial intelligence will last until at least 2028. The South Korean technology giant reported a nearly 19-fold jump in second-quarter operating profit, reaching record levels as AI server demand fuels unprecedented sales of DRAM and NAND memory.

The company's performance was bolstered by its position in the high-bandwidth memory (HBM) market, a critical component for AI processors. Samsung is aggressively expanding its infrastructure, including its Pyeongtaek fab, to meet the skyrocketing demand. This expansion comes as part of a broader industry trend where memory makers are seeing 130% year-on-year revenue growth due to the data center buildout.

Samsung’s optimistic outlook contrasts with recent volatility in its domestic rival SK Hynix, whose shares fell despite reporting a 557% jump in operating profit. The discrepancy underscores the high bar investors have set for the sector. Samsung's long-term forecast suggests that the 'AI utility' era is just beginning, with capital expenditures in memory technology expected to remain at historic highs for several years.