AI boom sends Samsung profit soaring 782%
AgenciesSamsung Electronics forecast Thursday a more than 780 percent leap in third-quarter operating profit from a year earlier, buoyed by high memory chip prices as AI fuels a gl...
Samsung Electronics announced on Thursday that its third-quarter operating profit jumped by more than 780 percent year-on-year, rising to 107.4 trillion won ($80.1 billion). The South Korean tech giant attributes the surge to the skyrocketing prices of memory chips, driven by the growing demand for artificial intelligence applications.
As the world's largest producer of memory chips, Samsung is witnessing a supply shortage, with advanced types of chips being heavily sought after for data centers powering AI technologies. This marks the first time a South Korean company has ever recorded a quarterly operating profit exceeding 100 trillion won, signaling four consecutive quarters of record-breaking sales and profit figures.
Analysts at Shinhan Securities predict even stronger earnings for Samsung next year, as the company ramps up production of high-bandwidth memory (HBM) chips, anticipated to open up renegotiation opportunities for prices. However, rising production costs present a challenge for Samsung, as it seeks to limit price increases to maintain shipment volumes and market share.
Written by urgent.news from Qatar Tribune Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
