AI chip boom pushes Samsung profits to record $80bn
The tech giant is also expected to get a boost from its latest folding devices that were launched in August.
Samsung Electronics anticipates a staggering nine-fold increase in its quarterly profits, compared to the same period last year, as demand for memory chips utilized in artificial intelligence (AI) data centers surges. The company projects its operating profit for the three months ending at the end of September to soar to 107.4tn won (£61bn; $80bn), marking its fourth consecutive quarter of record earnings.
Samsung is among the world's leading memory chip manufacturers, alongside SK Hynix and US-based Micron, supplying chips essential for AI companies such as Nvidia. The South Korean tech giant, known for its Galaxy Fold and S26 smartphones, is also anticipated to benefit from its latest folding devices introduced in August. Full third-quarter earnings are expected to be disclosed by the end of October.
South Korean conglomerates typically release previews of their earnings to inform investors before presenting more comprehensive reports. The global demand for computer chips powering AI advancements has been immense, significantly contributing to the earnings and stock prices of companies involved in the sector. This surge in demand has led to a global semiconductor shortage, driving up sales for businesses like Samsung.
SK Hynix and Samsung's market valuations surpassed $1tn (£757bn) earlier this year; however, their shares have since declined due to concerns about tech stocks being overvalued.
Written by urgent.news from BBC Technology's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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