Samsung Electronics expects its profits for the April to June 2024 quarter to surge 15 times compared to the same period last year.
This remarkable increase is driven by high demand and rising prices for advanced chips used in AI technology, a key sector for Samsung.
As the world’s leading producer of memory chips, smartphones, and televisions, Samsung’s forecasted profit of 10.4 trillion won ($7.54 billion) exceeds expectations, reflecting robust sales in AI-driven chips for data centers and smartphones.
The announcement buoyed Samsung’s stock, which rose more than 2% in early trading in Seoul. Earlier this year, Samsung already reported a more than tenfold profit increase for the first quarter, underscoring its strong performance in a booming tech market.
Analysts attribute much of this growth to the surge in demand for AI chips, which has also propelled companies like Nvidia to new market heights.
However, Samsung Electronics faces challenges ahead, including a potential three-day strike by workers seeking improvements in bonus transparency and time-off policies.
Despite these labor issues, Samsung’s strong position in the tech sector, particularly in AI-related chips, continues to drive its profitability and market influence globally.
Credit : BBC
https://www.bbc.com/news/articles/c25l0yyzjvno