The South Korean technology giant Samsung Electronics estimated on Friday that its operating profit in the second quarter was 15 times higher than in the same period last year, amid a boom in artificial intelligence and a surge in semiconductor prices.
In the period from April to June, the operating profit is expected to amount to 10.4 trillion won (6.96 billion euros), calculated the world’s largest manufacturer of memory chips, smartphones, and televisions. In spring 2023, it was 670 billion won.
Revenue is likely to have increased by 23 percent, to 74 trillion won, Samsung announced. The complete business report will be published at the end of the month.
The boost to Samsung’s results was driven by a wave of demand for sophisticated DRAM chips, analysts explain, highlighting high bandwidth memory (HBM) chips used in artificial intelligence setups and NAND DRAM chips for data center servers and devices equipped for AI-based services.
Prices of DRAM chips surged in the second quarter by 13 to 18 percent compared to the beginning of the year, while NAND flash chip prices rose by 15 to 20 percent, data from TrendForce showed.
In addition to higher semiconductor prices, Samsung’s profit was likely supported by the reversal of the write-down of the book value of chip inventories, they speculate.
The company highlighted in its first-quarter business report that it expects another good year, despite fluctuations caused by ‘macro trends’ and geopolitical issues.
– We expect strong demand for personal computers and mobile devices due to the trend of AI integration – they emphasized.
