Samsung flags strong AI demand as second-quarter profit soars on higher chip prices
A visitor uses a Samsung Electronics' flagship smartphone Galaxy S24 during its unveiling ceremony in Seoul, South Korea, Jan 15, 2024.
PHOTO: Reuters
PUBLISHED ONJuly 31, 2024 3:50 AM
SEOUL — Samsung Electronics forecasted robust demand for chips driven by artificial intelligence (AI) investments in the second half of 2024, as it reported a more than 15-fold rise in its second-quarter operating profit.
"In the second half of 2024, AI servers are expected to take up a larger portion of the (memory) market as major cloud service providers and enterprises expand their AI investments," Samsung said in a statement.
Rebounding semiconductor prices stoked by the AI boom lifted June quarter earnings from a low base a year ago.
The world's biggest maker of memory chips, smartphones and TVs said operating profit rose to 10.4 trillion won (S$10.1 billion) in the April to June period, up from 670 billion won a year earlier.
That was in line with Samsung's own estimate of 10.4 trillion won flagged earlier in July.
It was Samsung's highest operating profit since the third quarter of 2022, spurred by the chip division returning to form as the tech giant's cash cow business after a slump caused by weak post-pandemic demand for gadgets that use the chips.
Revenue rose 23 per cent to 74 trillion won.
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