Samsung Electronics, the world’s largest memory chip, smartphone, and TV manufacturer, expects a remarkable 15-fold increase in profits for the second quarter of 2024 compared to the same period last year.
The artificial intelligence (AI) boom has driven up demand for advanced chips, pushing the firm’s forecast to 10.4tn won ($7.54bn), surpassing analysts’ expectations.
The announcement sent Samsung shares soaring over 2% in early Seoul trading, building on the company’s impressive 10-fold profit jump in the first quarter. According to Marc Einstein, chief analyst at ITR Corporation, “Skyrocketing demand for AI chips in data centers and smartphones” is driving the growth.
The AI boom has also boosted the broader market, pushing the S&P 500 and Nasdaq to new records, with Nvidia’s market value surging past $3tn. Samsung’s earnings are expected to benefit from this trend, making it a key player in the industry.
However, the company faces a potential three-day strike starting Monday, as workers demand a more transparent bonus and time-off system. Despite this, Samsung’s outlook remains strong, driven by the AI-driven chip demand.
