Samsung Profit Surges Ninefold on AI Chip Demand
The South Korean tech giant anticipates record earnings driven by booming demand for memory chips essential for artificial intelligence data centers.
Samsung Electronics anticipates a nine-fold increase in quarterly profits compared to the previous year, projecting an operating profit of 107.4 trillion won for the three months ending in September. This marks the company's fourth consecutive quarter of record earnings, a surge largely attributed to the intense global demand for memory chips used in artificial intelligence data centers.Samsung, a leading global memory chip manufacturer alongside rivals SK Hynix and US-based Micron, produces chips vital for AI companies such as Nvidia. The company's earnings are also expected to be bolstered by the launch of its latest folding smartphones in August.Samsung is scheduled to release its complete third-quarter financial results at the end of October. Major South Korean corporations typically provide preliminary earnings previews to inform investors ahead of more detailed reports.The significant global demand for computer chips powering AI development has contributed to increased earnings and stock values for manufacturers in the sector. This sustained demand has led to a worldwide shortage of semiconductors, further boosting sales for companies like Samsung.Earlier in the year, Samsung and SK Hynix saw their stock market valuations surpass $1 trillion, although their shares have since seen a decline amid concerns about overvaluation in the tech stock market.