Samsung beats Nvidia with record $58.5 billion operating profit in Q2 - The Korea Economic Daily Global Edition

Samsung Electronics achieved a record $58.5 billion operating profit in Q2, surpassing NVIDIA and demonstrating strong performance in semiconductors and consumer electronics. This achievement highligh... Read original →

Samsung’s record Q2 profit stems from its vertically integrated advantage amid acute AI chip shortages. Technically, tight HBM and advanced-node capacity is forcing cost reallocation downstream—Galaxy Z8’s proposed 10% price hike signals wafer-fab pressure shifting to consumers. On compliance, U.S.-led export controls on semiconductor equipment are raising dual-audit costs for Samsung’s fabs in Korea and Xi’an, despite no direct sanctions yet. Competitively, NVIDIA can’t replicate Samsung’s IDM model soon, likely accelerating its reliance on TSMC’s CoWoS packaging and Grace Hopper scale-up; Qualcomm and MediaTek may seize mid-tier AI smartphone SoC share. Over the next 12–24 months, the industry faces a ‘structural shortage’ norm: persistent high-end AI chip deficits will sustain premium pricing while spurring HBM4 investments—but surging capex could compress sector-wide margins by 2027.