Samsung reports record profit as South Korean chipmakers benefit from AI boom

Samsung Electronics reported a record operating profit of 89.5 trillion won ($62 billion) for the April-June quarter on Thursday, a day after rival SK Hynix also reported record earnings, as the world’s two largest memory chipmakers continue to benefit from surging demand linked to the global artificial intelligence boom.

Despite their soaring profits, shares of both companies have fallen sharply this week in South Korea’s volatile stock market, where retail investors often drive sharp swings. Investors are increasingly concerned about the companies’ plans to spend heavily on expanding manufacturing capacity and the prospect of intensifying competition from China.