Samsung Electronics’ forecast for a jump in profits reflects the positive impact of the boom in artificial intelligence on the memory chip market.
Stocks jumped Samsung Electronics Co., Ltd. To its highest level since January 2021 after the company announced its expectations for a significant increase in operating profits in the second quarter of this year.
The company attributed this expected increase to the huge boom in the field of computing.artificial intelligenceWhich led to an increase in the prices of memory chips.
The company said in a statement that it expects to post an operating profit of 10.4 trillion won ($7.5 billion) in the second quarter, up 1,452 percent from a year earlier. It also forecast a 23.3 percent increase in revenue to 74 trillion won in the April-June period.
This is considered the highest operating profit.For SamsungSince the third quarter of 2022, it also exceeds the annual figure of 6.5 trillion won for 2023.
This strong performance is attributed to the rising prices of DRAM and NAND memory products, especially high-bandwidth memory (HBM), which has seen increased demand due to its use in graphics processing units (GPUs) needed for AI computing.
Samsung’s operating profit is expected to continue to grow in the second half of the year, driven by continued demand for high-bandwidth memory products and high-capacity solid-state drives.
Analysts expect the company’s operating profit in the third quarter to jump nearly 400% to 12 trillion won, with sales reaching 82.5 trillion won.
