Samsung Electronics expects a more than 15-fold increase in second-quarter operating profit as memory chip prices continue their recovery from last year’s slump on strong demand for artificial intelligence products.
The stronger than expected guidance on Friday underscores a boom in data centres and AI development as big tech companies race to develop their own advanced AI models, sparking demand for cutting-edge D-Ram chips such as high-bandwidth memory.
The world’s largest maker of memory chips by sales estimated operating profit jumped 1,452 per cent to Won10.4tn ($7.5bn) in preliminary numbers for the April-June quarter, the highest since its third quarter of 2022. The figure was much better than analysts’ expectations of Won8.8tn, according to LSEG SmartEstimates. Sales are expected to have increased 23 per cent to Won74tn from a year earlier.