Samsung Electronics expects income for the three months to June 2024 to develop 15 occasions in contrast with the identical interval final 12 months.
The increase in synthetic intelligence (AI) has pushed up the worth of superior chips, boosting the corporate’s forecast for the second quarter.
The South Korean tech big is the world’s largest maker of reminiscence chips, smartphones and televisions.
The information pushed Samsung’s shares up greater than 2% in early buying and selling in Seoul.
The corporate additionally The report said the increase was more than 10 times Revenue for the primary three months of this 12 months.
The corporate stated revenue for the present quarter was anticipated to rise to 1.04 trillion gained ($7.54 billion; 5.9 billion kilos) from 670 billion gained final 12 months.
This beat analysts’ forecast of 8.8 million gained, in accordance with LSEG SmartEstimate.
“At present, we’re seeing a surge in demand for synthetic intelligence chips in knowledge facilities and smartphones,” stated Marc Einstein, principal analyst at ITR Company, a analysis and consulting agency in Tokyo.
Optimism about synthetic intelligence was one of many causes for the broader market rally final 12 months, with the S&P 500 and the Nasdaq hitting new highs on Wednesday.
Chip manufacturing big Nvidia’s market capitalization soared to greater than $3 trillion final month, as soon as firmly rating first among the many world’s most beneficial firms.
Einstein added: “The increase in synthetic intelligence has significantly boosted Nvidia’s improvement, whereas additionally driving income for Samsung and all the trade.”
Samsung Electronics is the flagship division of South Korea’s Samsung Group.
The tech firm faces a potential three-day strike subsequent week, which is anticipated to start on Monday. Staff unions are demanding a extra clear bonus and depart system.
