In comparison to the same period previous year, Samsung Electronics anticipates a 15-fold increase in profits for the three months ending in June 2024.
A surge in artificial intelligence (AI) has increased the cost of sophisticated chips, raising the company’s second-quarter projection.
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The world’s biggest manufacturer of memory chips, smartphones, and televisions is this South Korean electronics behemoth.
Samsung shares rose more than 2% in early Seoul trading after the announcement.
The company also revealed that its profits for the first three months of this year increased by a factor of more than ten.
It stated that it expects its profit to increase from 670 billion won last year to 10.4 trillion won ($7.54 billion; £5.9 billion) this quarter.
That exceeds analysts’ estimates by 8.8 trillion won, as per LSEG SmartEstimate.
The demand for AI chips in data centres and smartphones is currently surging, according to Marc Einstein, chief analyst of the Tokyo-based research and consultancy company ITR Corporation.
The general market rise over the past year, which sent the US Nasdaq and S&P 500 to all-time highs on Wednesday, can be attributed in part to optimism about AI.
Last month, the market value of Nvidia, the massive chip manufacturer, surpassed $3 trillion, momentarily taking the top spot as the most valuable corporation in the world.
“The AI boom which massively boosted Nvidia is also boosting Samsung’s earnings and indeed those of the entire sector,” Einstein stated.
The flagship company of the South Korean conglomerate Samsung Group is Samsung Electronics.
The tech company could be subject to a three-day strike starting on Monday of next week. A more open system for bonuses and vacation time is what a union of workers is calling for.