Memory chipmakers outpace big tech in quarterly profits
Global memory semiconductor manufacturers have reported a combined quarterly profit surpassing that of the five largest U.S. tech firms for the first time.
Five major global memory chip producers—Kioxia, Samsung, SK Hynix, Micron, and Western Digital—reported a combined operating profit of 32 trillion yen for the most recent quarter. This figure represents a tenfold increase year-over-year and moves ahead of the 25 trillion yen combined profit reported by Alphabet, Microsoft, Amazon, Meta, and Apple.
The surge in profitability is primarily attributed to rising demand for storage components driven by artificial intelligence investments. Kioxia saw a 33-fold increase in net profit, while Samsung became the first technology firm to surpass 100 trillion won in quarterly operating profit. Industry-wide operating margins have surged from approximately 10 percent in early 2025 to nearly 70 percent.
Despite the strong financial performance of chipmakers, analysts are monitoring the sustainability of capital expenditure among U.S. tech giants. Several major companies have reported tightening free cash flow as they continue to fund massive data center expansion, leading to concerns regarding the long-term viability of current investment levels.