The electronics group from South Korea is benefiting above all from the strong demand for artificial intelligence. This development is reflected in the results.
Rising chip prices as a result of strong demand for artificial intelligence (AI) continue to boost the results of electronics giant Samsung. In its quarterly outlook for the months April to June, the market leader for memory chips, smartphones and televisions assumes that operating profit has increased more than fifteenfold year-on-year. Profit from core businesses is expected to amount to 10.4 trillion won (around 7 billion euros), according to a stock exchange announcement by the South Korean company. In the second quarter of last year, it was 670 billion won.
The figures for the past quarter were significantly higher than market expectations. Samsung Electronics expects sales to increase by 23 percent to 74 trillion won (49.6 billion euros). Traditionally, the company only publishes more precise figures at a later date.
Like other chip manufacturers, Samsung is benefiting primarily from the high demand for semiconductors that are necessary for the development of AI. In particular, the need for high-bandwidth chips (HBM), which are used in the development and operation of AI platforms and are also manufactured by Samsung, among others, has grown significantly.
According to market researchers’ calculations, in the first quarter of 2024, Samsung also reclaimed the top spot in the smartphone market from Apple.
Source: Stern
