AI chip demand drives Samsung's profit to record levels
South Korean tech giant Samsung Electronics expects a nine-fold increase in quarterly operating profit thanks to massive demand for memory chips used in artificial intelligence data centers.
Samsung Electronics expects its quarterly operating profit to surge nine-fold year-on-year to 107.4 trillion won, or approximately $80 billion, driven by intense demand for memory chips used in artificial intelligence data centers.
Quarterly Profit Forecast
Samsung Electronics estimates that its operating profit for the three-month period ending in late September will rise to the level of 107.4 trillion won.
With this increase, the company achieves the success of recording record earnings for its fourth consecutive quarter.
Artificial Intelligence and Chip Demand
Massive global demand for computer chips powering artificial intelligence development has boosted earnings and shares for manufacturers.
Samsung, which is among the companies producing chips of critical importance for AI firms such as Nvidia, competes with SK Hynix and Micron.
Smartphones and New Models
Samsung, one of the world's largest smartphone manufacturers, is the maker of the Galaxy Fold and S26 models.
The company also expects to receive financial support from its latest foldable devices launched in August.
Investments and Sector Growth
US tech giants such as Google, Amazon, and Meta have committed to channeling more than $650 billion into artificial intelligence projects this year.
In June, South Korea announced projects worth at least $880 billion, led by Samsung and SK Hynix, to increase chip manufacturing capacity.