Samsung reports 15-fold increase in profit due to AI-driven demand for high-end chips.

From Investing.com: 2024-07-04 20:35:28

Samsung Electronics reported a more than 15-fold increase in second-quarter operating profit to 10.4 trillion won ($7.54 billion) from a year earlier, beating estimates. Revenue rose 23% to 74 trillion won. AI-driven demand for high-end chips boosted semiconductor prices, but a slowdown is expected in the third quarter.

Samsung’s key semiconductor division saw improved profits in the second quarter due to rising memory chip prices driven by AI chip demand. DRAM and NAND Flash chip prices surged by 13% to 20%. However, the price hike may slow in the third quarter, with analysts looking to Samsung for outlook on legacy chip demand.

Investors are awaiting news on whether Samsung’s fourth-generation HBM chips will be approved to supply Nvidia. Micron Technology also reported strong revenue due to AI demand. Samsung’s shares are up 8% year-to-date, trailing SK Hynix’s 63% rise. Samsung replaced the chief of its semiconductor division in May.



Read more at Investing.com: Samsung flags better-than-expected profit rise as AI boom lifts chip prices By Reuters