Samsung's Profit Surge Amid AI Chip Demand
South Korean technology giant Samsung Electronics, recognized as one of the world's leading smartphone manufacturers, has announced expectations of a 19-fold increase in its profits. This surge is attributed to the global demand for artificial intelligence (AI) memory chips.
The company forecasted earnings of 89 trillion won (£44bn; $58bn) for the period from the beginning of April to the end of June, marking its third consecutive quarter of record operating profits.
Major South Korean corporations such as Samsung typically release earnings forecasts ahead of their official detailed reports to provide guidance to investors.
Samsung's latest forecast, issued prior to its full results scheduled for release later in July, coincides with a semiconductor market where demand continues to exceed supply, resulting in increased prices.
As one of the world's largest semiconductor manufacturers, Samsung produces chips for prominent firms including Nvidia and Google. The shares of major technology companies have experienced significant growth in recent months due to the heightened demand for chips.
Since the beginning of this year, Samsung's shares have more than doubled in value, while those of its South Korean competitor SK Hynix have risen by over 200%.
