Samsung Electronics anticipates a remarkable 15-fold profit surge for Q2 2024, thanks to a booming AI market driving up advanced chip prices.
This South Korean tech titan, the global leader in memory chips, smartphones, and televisions, saw its shares rise over 2% in early Seoul trading.
The firm projects its quarterly profit to hit 10.4 trillion won ($7.54 billion), a substantial leap from 670 billion won last year, surpassing analysts’ 8.8 trillion won forecast, according to LSEG SmartEstimate.
“Skyrocketing demand for AI chips in data centers and smartphones is fueling this growth,” remarked Marc Einstein, chief analyst at Tokyo-based ITR Corporation. This AI optimism has also rallied broader markets, with the S&P 500 and Nasdaq setting new records.
Nvidia’s market value surpassed $3 trillion last month, illustrating the sector’s explosive growth. “The AI boom that’s lifted Nvidia is also propelling Samsung’s earnings and the entire sector,” Einstein added.
However, Samsung Electronics, the crown jewel of the Samsung Group, faces a potential three-day strike starting Monday. Workers are demanding greater transparency in bonus and time-off systems.
Samsung’s impressive business profit forecast symbolizes the AI revolution’s transformative impact on the tech industry, promising exciting yet challenging times ahead.
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