Samsung Electronics is poised for a significant increase in profits for the second quarter of 2024, with expectations of a 15-fold jump compared to the same period last year. The surge in profits is attributed to the artificial intelligence (AI) boom, which has driven up the prices of advanced chips.
As the world’s largest producer of memory chips, smartphones, and televisions, Samsung’s forecasted profit for the quarter is set to rise to 10.4 trillion won ($7.54 billion), a significant leap from the 670 billion won recorded last year. This surpasses analysts’ forecasts of 8.8 trillion won, indicating the positive trajectory of the tech giant.
The announcement of the profit surge has already had a positive impact on Samsung’s shares, which saw a more than 2% increase during early trading hours in Seoul. The optimism surrounding AI has also contributed to a broader market rally, pushing the S&P 500 and Nasdaq to new records in the United States.
Despite the positive outlook, Samsung Electronics is facing potential challenges in the form of a planned three-day strike by its workers next week. The union of workers is advocating for a more transparent system for bonuses and time off, highlighting the ongoing labor issues within the company.
As a flagship unit of the South Korean conglomerate Samsung Group, Samsung Electronics continues to be a key player in the tech industry. The company’s focus on AI innovation and advanced technology remains a driving force behind its success and profitability in the global market.
