Revenue for Q2 is expected to be between 73 trillion and 75 trillion won.
Samsung Electronics reported an operating profit of 10.4 trillion won for Q2 2024.
Samsung's shares hit their highest level since January 2021 after the announcement.
The increase in profits is attributed to the demand for memory chips from the AI industry.
Samsung Electronics Co Ltd, a South Korean tech giant, reported an estimated operating profit of 10.4 trillion won ($7.5 billion) for the second quarter of 2024, marking a significant increase from the previous year's 670 billion won. The rise in profits can be attributed to increased demand for memory chips driven by the artificial intelligence (AI) industry, particularly high-bandwidth memory chips. Samsung expects revenue for the second quarter to be between 73 trillion and 75 trillion won, with sales likely rising from 60.01 trillion won a year ago. The company's shares hit their highest level since January 2021 after the announcement of these better-than-expected guidance. Samsung had faced record losses in 2023 due to a post-Covid slump, and the rebound in business is largely driven by AI optimism and recovery in memory chip demand. The company's focus on AI integration, such as its Galaxy S24 Ultra smartphone features for editing photos and online searching, has also contributed to the growth. Despite delays in qualifying for use in Nvidia's AI processors, Samsung enjoys the benefit of its number one capacity and market share, maximizing profit with a higher average selling price. The detailed second-quarter results are set to be released later this month.
Samsung expects operating profit of approximately 10.4 trillion won ($7.54 billion) for Q2 2024, a significant increase from the previous year’s 670 billion won.
Demand for artificial intelligence (AI) is driving Samsung’s rebound in business after record losses in 2023 due to a post-Covid slump.
Samsung Electronics Co Ltd's operating profit for Q2 2023 is estimated to be 10.4 trillion won ($7.50 billion), a 15-fold increase from the same period last year.
Increased demand for memory chips, particularly high-bandwidth memory chips, is driven by the AI industry.
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The article contains some instances of inflammatory rhetoric and an appeal to authority, but no formal or blatant logical fallacies are present. The author uses phrases like 'exponential rise', 'benefited from', and 'growing number of firms' which can be considered as inflammatory rhetoric, but they do not lead to any false conclusions. The author also mentions Reuters estimates and Samsung's preliminary earnings report, which can be seen as an appeal to authority since these sources are trusted in the industry. However, the article does not rely solely on these sources for its information and provides context about Samsung's earnings growth.
]Samsung said it will begin mass producing advanced HBM chips from this year, with a view to win more orders from AI darling NVIDIA Corporation (NASDAQ:).[
AI helped drive up demand for the chip industry over the past year, as a growing number of firms raced to capture market share from majors such as OpenAI with their own offerings.
