Samsung Surpasses Nvidia to Become the World's Most Profitable Company

Samsung Electronics has surpassed Nvidia in operating profit for Q2 2026 (April to June), becoming the world’s most profitable technology company. The rapid growth in demand for AI-related memory has driven the company’s semiconductor division, with its annual profit projected to exceed the cumulative total of the past four decades.

AI-Driven Semiconductor Demand as the Key Driver

According to a report from Tom’s Hardware, Samsung’s operating profit for Q2 2026 reached $58.5 billion (approx. ¥8.9 trillion), surpassing Nvidia’s $53.54 billion for the same period. This also significantly exceeded analysts’ expectations of $55.1 billion.

Market consensus from securities analysts predicts Samsung’s total operating profit for 2026 will reach approximately ₩300 trillion (around $196 billion). This figure surpasses the cumulative profit generated by the company’s semiconductor division (the DS division) over the past 40 years.

A Structure Where Semiconductors Account for

94% of Profits

Samsung’s DS division accounted for ₩53.7 trillion (approximately 94%) of the total operating profit of ₩57.2 trillion in Q1 2026, indicating a heavy reliance on this segment. The semiconductor business is expected to dominate the company’s total operating profit for the full year of 2026 as well.

Kim Yong-Kwan, a key executive, commented to employees, “This year’s profit will exceed the cumulative profit generated by our semiconductor business over the past 40 years.” It was noted that this statement was limited to the semiconductor division and not the entire Samsung Group.

The expansion in AI demand has significantly boosted sales of high-value-added products such as high-bandwidth memory (HBM) and server SSDs. Although Samsung faces competition in the HBM market from SK Hynix, it is expanding profits through the mass production of HBM3E and accelerated development of the sixth-generation HBM4.

Employees to Receive an Average Bonus of $340,000

Buoyed by its strong performance, Samsung plans to distribute an average bonus of $340,000 (approximately ¥52 million) to employees working in its semiconductor factories. This figure represents a record high for major South Korean companies.

While Nvidia has experienced remarkable growth due to rising GPU demand from 2023 to 2025, the ripple effect of AI infrastructure investment across the semiconductor manufacturing sector is leading to a rapid expansion of memory manufacturers’ revenues. Samsung’s semiconductor division is forecast to generate operating profits in 2026 that exceed the total profits it has earned in the semiconductor business since the 1980s.

Impact on Competitors and Market Dynamics

Samsung’s record-breaking profits do not necessarily undermine Nvidia’s market dominance. Nvidia also recorded its highest-ever operating profit during the same period, reflecting the overall expansion of AI investments.

A key point of interest is how investments in AI data centers are driving demand not just for GPUs but also for HBM and large-capacity storage. Samsung, with strengths in both memory and storage, operates under a business model distinct from foundry companies like TSMC, which supports Nvidia’s GPU production. Samsung’s success highlights the growing influence of suppliers in the AI value chain.

However, whether Samsung can sustain this level of profitability will depend on competition in the HBM market and fluctuations in memory prices. SK Hynix remains a formidable competitor in the HBM space, and the market share battle is expected to continue.

---

Editorial Opinion

In the short term, Samsung’s record-breaking profits demonstrate how AI investments are impacting the entire semiconductor supply chain. The second half of 2026 is likely to see continued momentum from high memory prices and increased HBM demand. However, changes in HBM specifications accompanying Nvidia’s next-generation GPUs pose a supply risk. All eyes will be on the developments of both companies from Q3 onward.

In the long term, the memory business appears to be breaking away from its traditional cycles and transforming into a high-profit sector driven by AI demand. Whether Samsung can maintain its leadership with HBM4 mass production will be a key determinant of its competitive advantage, while success in securing AI-related orders for its foundry business will shape further growth opportunities.

From the editorial team’s standpoint, as the technological interdependence between GPUs and memory deepens, it will be intriguing to see whether the relationship between Samsung and Nvidia evolves beyond conventional business transactions to foster new collaborations or vertical integrations. Additionally, the impact of extreme profit concentration in the semiconductor division on investments in other segments warrants close observation.

References

• Samsung Passes Nvidia To Become Most Profitable Company In the World - Slashdot — Published on July 7, 2026
• Samsung Chip Workers To Get $340,000 Average Bonus In AI Boom (Tom’s Hardware article)