AI chip boom lifts Samsung profits by 1,800%
Samsung Electronics expects to post a 19-fold jump in its profits, driven by global demand for artificial intelligence (AI) memory chips. The company forecast that it would make 89.4tn won (£43.6bn; $58.4bn) between the start of April and the end of June, marking its third consecutive record quarterly operating profit. Samsung said in its earnings preview that it generated around 171tn won in sales during the quarter, more than double the amount for the same period last year.
Samsung's latest forecast was released on Tuesday ahead of its full results due later in July. Industry analyst Marc Einstein from Counterpoint Research stated that Samsung's projected earnings mark one of "the best quarterly performances ever," which was close to the tech sector record set by Nvidia earlier this year. Einstein added, "This has everything to do with the AI boom as memory companies continue to ride a tidal wave driven by limited supply and unprecedented demand." Samsung has hiked the prices of its memory chips as supplies remain tight. Bryan Ma from IDC said, "We do expect supplies to be tight through next year given the unabated demand from AI data centres." Samsung is one of the world's biggest semiconductor manufacturers, making chips for firms like Nvidia and Google.
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South Korean technology giant Samsung Electronics is poised to announce its latest quarterly profits. The company's performance is expected to
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