Samsung profits set to soar 15-fold as demand for AI chips skyrockets

Seoul, South Korea – Samsung Electronics is poised to see a significant increase in profits for the second quarter of 2024, with expectations of a 15-fold jump compared to the same period last year. This surge in profits is attributed to the growing demand for advanced computer chips, driven by the widespread adoption of artificial intelligence (AI).

As the world’s largest producer of memory chips, smartphones, and televisions, Samsung’s market dominance has played a key role in its projected profitability. The firm anticipates a profit rise to 10.4 trillion won in this quarter, a substantial increase from 670 billion won reported last year, surpassing analysts’ expectations.

The AI chip market has been a driving force behind the recent rally in the broader tech industry, leading to record highs in stock prices for companies like Nvidia. This market optimism has propelled Samsung’s earnings, mirroring the success seen across the sector, as highlighted by Marc Einstein, chief analyst at ITR Corporation in Tokyo.

The growing demand for AI chips in data centers and smartphones has created a favorable environment for tech companies like Samsung to thrive. This market trend also reflects the increasing importance of AI technology in various industries, fueling innovation and economic growth.

Despite the positive outlook for Samsung, the tech giant faces potential challenges ahead, including a looming three-day strike by its workers demanding a more transparent bonus and time-off system. This labor dispute underscores the ongoing tensions between the company and its workforce, highlighting the need for improved labor practices in the tech industry.

As Samsung continues to navigate the evolving tech landscape, its ability to adapt to market trends and address labor concerns will be crucial in ensuring sustained growth and profitability in the highly competitive global market.