South Korea: Samsung Electronics has announced that it expects second-quarter operating profits to increase more than 15 times compared to last year.
A surge in artificial intelligence (AI) has increased the cost of sophisticated chips, raising the company’s second-quarter projection.
Samsung shares rose more than 2 percent in early Seoul trading after the announcement. The company also revealed that its profits for the first three months of this year increased by a factor of more than ten.
Sales are expected to rise 23.3 percent to 74 trillion South Korean won, Samsung said. The world economy depends heavily on semiconductors, which are utilised in everything from automobiles and weapons to home appliances and cell phones.
Furthermore, the popularity of ChatGPT and other generative AI technologies has caused a sharp increase in demand for the cutting-edge chips that underpin AI systems.
In April, the US announced that Samsung would get incentives of up to $6.4 billion to manufacture advanced electronics in Texas.
In the same month, Samsung overtook Apple as the best-selling smartphone, according to industry tracker International Data Corporation (IDC).
On July 10 in Paris, Samsung is scheduled to reveal its most recent flagship foldable smartphones, which are outfitted with AI capabilities, as well as an array of accessories, such as a novel “smart ring” for health monitoring. Samsung will be releasing its final earnings report at the end of this month as per the statement.
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