Samsung
Electronics
expects
its
profits
for
the
three
months
to
June
2024
to
jump
15-fold
compared
to
the
same
period
last
year.
An
artificial
intelligence
(AI)
boom
has
lifted
the
prices
of
advanced
chips,
driving
up
the
firm’s
forecast
for
the
second
quarter.
The
South
Korean
tech
giant
is
the
world’s
largest
maker
of
memory
chips,
smartphones
and
televisions.
The
announcement
pushed
Samsung
shares
up
more
than
2%
during
early
trading
hours
in
Seoul.
The
firm
also
reported
a
more
than
10-fold
jump
in
its
profits
for
the
first
three
months
of
this
year.
In
this
quarter,
it
said
it
is
expecting
its
profit
to
rise
to
10.4tn
won
($7.54bn;
£5.9bn),
from
670bn
won
last
year.
That
surpasses
analysts’
forecasts
of
8.8tn
won,
according
to
LSEG
SmartEstimate.
“Right
now
we
are
seeing
skyrocketing
demand
for
AI
chips
in
data
centers
and
smartphones,”
said
Marc
Einstein,
chief
analyst
at
Tokyo-based
research
and
advisory
firm
ITR
Corporation.
Optimism
about
AI
is
one
reason
for
the
broader
market
rally
over
the
last
year,
which
pushed
the
S&P
500
and
the
Nasdaq
in
the
United
States
to
new
records
on
Wednesday.
The
market
value
of
chip-making
giant
Nvidia
surged
past
$3tn
last
month,
briefly
holding
the
top
spot
as
the
world’s
most
valuable
company.
“The
AI
boom
which
massively
boosted
Nvidia
is
also
boosting
Samsung’s
earnings
and
indeed
those
of
the
entire
sector,”
Mr
Einstein
added.
Samsung
Electronics
is
the
flagship
unit
of
South
Korean
conglomerate
Samsung
Group.
Next
week,
the
tech
company
faces
a
possible
three-day
strike,
which
is
expected
to
start
on
Monday.
A
union
of
workers
is
demanding
a
moretransparent
system
for
bonuses
and
time
off.