Samsung Eyes Record Profit on AI Chip Demand Surge
The South Korean tech giant anticipates a nearly nine-fold increase in third-quarter operating profit, driven by booming demand for memory chips essential for artificial intelligence data centers.
Samsung is poised to report a record quarterly profit, potentially exceeding £60 billion, fueled by a significant surge in demand for memory chips used in artificial intelligence data centers.
The South Korean technology firm expects its third-quarter operating profit to reach approximately £61 billion, marking an almost nine-fold increase compared to the previous year. This performance is attributed to the accelerating investment in AI infrastructure, which has outpaced the supply of essential memory chips. Consequently, chip prices have risen as companies compete for available supplies from manufacturers like Samsung.
Samsung's business has been further bolstered by the success of its latest foldable smartphones. The company's robust performance places it on track for its fourth consecutive quarter of record profits.
"Samsung continues to benefit from unprecedented levels of demand associated with AI," noted Dan Coatsworth of AJ Bell, highlighting the company's strong position in the current market landscape.