By Kwanwoo Jun

Samsung Electronics projected a 19-fold jump in second-quarter operating profit, extending its record earnings streak on booming demand for artificial-intelligence chips, though the upbeat outlook did little to lift its shares.

The South Korean technology company has extended its run of record quarterly revenue and operating profit since the final quarter of 2025. Its chip-making division is expected to fuel even stronger earnings growth this year, many analysts said, citing booming demand for AI chips.

Samsung said in a preliminary earnings report Tuesday that its operating profit likely reached an all-time high of about 89.4 trillion won, equivalent to $58.47 billion, for the three months ended June. That would be a 56% jump from the previous quarter's record.

The projected operating profit surpassed a FactSet-compiled consensus estimate of 85.054 trillion won for the second quarter.

Quarterly revenue is forecast to have more than doubled to a record 171 trillion won, Samsung said.

The strong results from the world's largest memory-chip maker came amid lingering market concerns about the sustainability of AI computing-capacity spending. Shares in Samsung more than doubled from April to June, only to lose momentum this month as investors' jitters resurfaced.

The company's shares fell as much as 10% in Tuesday afternoon trading before closing 6.9% lower at 296,000 won. Analysts said some investors used the earnings beat as an opportunity to lock in gains rather than chase the stock higher.

"Samsung shares are falling on profit-taking despite record second-quarter earnings," Mirae Asset Securities analyst Kim Joo-youn said in a note. Despite Tuesday's decline, the stock remains up nearly 150% this year.

Some analysts said that Samsung's operating profit would have topped the company's forecast had it not booked a provision for special bonuses payable early next year to employees in its chip-making division. Samsung in May agreed to allocate 10.5% of its semiconductor division's annual operating profit to special bonuses, contingent on the company meeting certain profitability benchmarks.

Citigroup analyst Peter Lee said prior to Tuesday's earnings guidance that Samsung's recent share-price pullback may be a technical correction. The stock has surged this year, supported by better-than-expected server DRAM chip pricing driven by strong demand for AI central processing units.

"We believe memory fundamentals are intact, and server DRAM pricing has been outperforming on strong CPU demand," Lee said, raising his 2026 operating profit forecast for Samsung to 401 trillion won from 334 trillion won.

In June, Samsung said it would spend about 400 trillion won to build a new semiconductor-manufacturing hub in southwestern South Korea to meet growing demand, as part of a broader investment plan focused on chips and AI.

The company is scheduled to release full quarterly results, including a breakdown of earnings by business segment, later this month.

Write to Kwanwoo Jun at kwanwoo.jun@wsj.com