Samsung posts 1,800% profit surge as AI chip sales soar

South Korean technology giant Samsung Electronics is projecting a 19-fold jump in its profits, driven by global demand for artificial intelligence memory chips.

The company estimated that it made 89.4 trillion won between April and June, marking a significant milestone for its operating profits.

On Tuesday, Samsung’s latest forecast will be released ahead of its preliminary earnings results later in July. This comes as demand for semiconductors outpaces inventory which has pushed up prices.

In this connection, industry analyst Marc Einstein from Counterpoint Research said: “ The company’s projected earnings marks one of the best quarterly performances ever.”

“This has everything to do with the AI boom as memory companies continue to ride a tidal wave driven by limited supply and unprecedented demand,” he continued.

According to research firm IDC, the massive demand for semiconductors for data centres and other AI infrastructure is unlike anything the memory industry has ever traversed.

Samsung is one of the world’s biggest manufacturers, making chips for firms like Nvidia and Google along with a distinct range of electronic devices. It has been observed that the shares of prominent tech firms have skyrocketed in recent months due to explosive growth.

Notably, Samsung’s shares fell by more than 8% in Seoul on Tuesday morning as some investors had projected its earnings to be even higher.

In comparison, Nvidia reported historic quarterly revenue for January and March which topped $80bn announced in May. According to some analysts, investors remain concerned about rising competition in the sector.

It is pertinent to mention here that jobs at Samsung and SK Hynix now guarantee a boost in marriage market value. Presidential chief of staff Kang Hoon-sik, cited a rise in their desirability indices compiled by matchmaking agency Sunoo, putting tech workers on an equal footing with doctors and lawyers.