Samsung Electronics saw its shares surge to a three-year high after issuing optimistic profit forecasts for the second quarter of 2024. The South Korean tech giant predicted a substantial 15-fold increase in operating profit, amounting to approximately 10.4 trillion Korean won ($7.5 billion), up from 670 billion won ($500 million) the previous year. This significant growth is attributed to heightened demand for advanced computer chips, driven by the global artificial intelligence boom. The company expects sales revenue to hit 60 trillion won ($43.5 billion) for the quarter, marking a nearly 25% increase from the same period last year. The strong performance is largely due to Samsung’s semiconductor unit, which benefits from soaring prices for high-end chips crucial for AI tools and data centers. The AI boom has not only aided Samsung but has also propelled other tech firms like Nvidia to remarkable market valuations. Samsung plans to release a detailed earnings report at the end of July.
Samsung Shares Soar to Three-Year High Amid AI-Driven Profit Surge
Samsung forecasts a 15-fold profit increase, driven by AI demand.
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