Samsung profits up a record 780pc despite AI jitters
Massive demand for AI chips delivered record quarterly profits to South Korea's Samsung Electronics on Thursday, but shares fell as investors questioned the resilience of the global tech boom. Samsung is the world's largest maker of memory chips – components in short supply as advanced types are snapped up for use in data centres powering artificial intelligence. The company posted July-September…
Samsung Electronics reported a record-breaking 780 percent increase in quarterly profits to 107.4 trillion won (US$80.5 billion) in the July-September period, marking the first time any technology company surpassed 100 trillion won in operating profit. The surge in profits is attributed to the strong demand for AI chips, particularly as data centres worldwide ramp up production to support the growing artificial intelligence industry.
Despite this impressive growth, Samsung's shares experienced a drop of over five percent on Thursday morning as investors grew skeptical about the sustainability of the global tech boom. The semiconductor division's operating profit, while surpassing market expectations, failed to meet the anticipated figures, leading to the share price decline according to Bloomberg News.
Samsung's memory business continued to outperform, maintaining a focus on AI-related products and navigating the challenges posed by capacity constraints. The company attributed its success to a strategic product mix and the overall strength in server demand, which led to elevated market prices across all applications.
Written by urgent.news from RTHK News - Finance's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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