Samsung Electronics expects 19-fold profit jump driven by AI memory chip demand
En resumen
- Samsung Electronics forecasts a 19-fold increase in profits for the April-June quarter, driven by high global demand for AI memory chips.
- The company expects to post 89tn won in operating profits, marking its third consecutive record quarter, as semiconductor prices rise due to supply shortages.
Resumen generado por IA
Por qué importa
Samsung Electronics, a major South Korean tech firm, releases earnings forecasts to guide investors. The current forecast follows two previous record quarterly profits.
South Korean technology giant Samsung Electronics says it 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 made 89tn won (£44bn; $58bn) between the start of April and the end of June, marking its third record quarterly operating profits in a row.
Major South Korean firms like Samsung release forecasts of their earnings ahead of official detailed reports to help guide investors.
Samsung's latest forecast, released ahead of its full results due later in July, comes as demand for semiconductors continues to outstrip supplies - which has pushed up prices.
Samsung is one of the world's biggest semiconductor manufacturers, making chips for firms like Nvidia and Google. The shares major techhave soared in recent months due to surging demand for chips.
Shares in Samsung have more than doubled in price since the start of this year, while South Korean rival SK Hynix has jumped by more than 200%.
Preguntas abiertas
- Will supply shortages continue?
- How will competition evolve?
