Samsung flags better-than-expected profit rise on AI boom

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Samsung Electronics has today estimated a more than 15-fold rise in its second-quarter operating profit, as rebounding semiconductor prices driven by the artificial intelligence boom lifted earnings from a low base a year ago.

The world's largest memory chip, smartphone and TV maker estimated its operating profit rose to 10.4 trillion won in the quarter ended June 30, from 670 billion won a year earlier.

Revenue likely rose 23% in the second quarter from the same period a year earlier to 74 trillion won, Samsung saidSamsung's key semiconductor division likely posted its second consecutive quarterly profit, improving on the first quarter, as memory chip prices keep rising from a mid-2022 to end-2023 trough that was caused by weak post-pandemic demand for gadgets that use the chips.

But the climb in memory chip prices may slow in third quarter, with TrendForce forecasting a 5% to 10% price hike for both conventional DRAM and NAND Flash chips, as demand for older, legacy chips from the consumer electronics market remains lacklustre.

 

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