Samsung Electronics expects its profits for the three months ending June 2024 to soar 15-fold compared to the same period last year. Reports Technology News
An artificial intelligence (AI) boom has driven up the prices of advanced chips, boosting the firm’s second-quarter forecast. The South Korean tech giant, the world’s largest maker of memory chips, smartphones, and televisions, saw its shares rise more than 2% during early trading hours in Seoul.
The company also reported a more than 10-fold increase in profits for the first three months of this year. For the current quarter, Samsung projects its profit to reach 10.4tn won ($7.54bn; £5.9bn), up from 670bn won last year. This surpasses analysts’ forecasts of 8.8tn won, according to LSEG SmartEstimate.
“Right now we are seeing skyrocketing demand for AI chips in data centers and smartphones,”said Marc Einstein, chief analyst at the Tokyo-based research and advisory firm ITR Corporation.