Driven by a booming market for artificial intelligence (AI), memory chip giant Samsung Electronics said it expects second-quarter operating profit to surge over 15 times year-over-year.
The South Korean company said it expects an operating profit of 10.4 trillion won ($7.5 billion) for the April to June period, a massive jump from the 670 billion ($486 million) won reported last year. Revenue also climbed 23.3% to 74 trillion won.
This strong performance surpassed analyst expectations by 25.8% and marks the first time Samsung has surpassed the 10 trillion won profit mark since the third quarter of 2022. It even eclipsed the company’s entire 2023 operating profit of 6.5 trillion won.
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Market analysts attribute this success to rising prices for DRAM (dynamic random-access memory) and NAND flash memory, both crucial components in AI systems.
While Samsung hasn’t released detailed breakdowns by division, estimates suggest the semiconductor business alone generated around 5 trillion won in operating profit. This news follows a turnaround in Samsung’s core semiconductor business, which posted its first quarterly profit since the second quarter of 2022 during the first quarter of this year. The company is set to disclose a full earnings report later in July.
