Samsung Electronics expects its earnings for the three months to June 2024 to leap 15-fold in comparison with the identical interval final yr.
A man-made intelligence (AI) growth has lifted the costs of superior chips, driving up the agency’s forecast for the second quarter.
The South Korean tech large is the world’s largest maker of reminiscence chips, smartphones and televisions.
The announcement pushed Samsung shares up greater than 2% throughout early buying and selling hours in Seoul.
The agency additionally reported a greater than 10-fold soar in its earnings for the primary three months of this yr.
On this quarter, it stated it’s anticipating its revenue to rise to 10.4tn gained ($7.54bn; £5.9bn), from 670bn gained final yr.
That surpasses analysts’ forecasts of 8.8tn gained, in keeping with LSEG SmartEstimate.
“Proper now we’re seeing skyrocketing demand for AI chips in knowledge facilities and smartphones,” stated Marc Einstein, chief analyst at Tokyo-based analysis and advisory agency ITR Company.
Optimism about AI is one motive for the broader market rally during the last yr, which pushed the S&P 500 and the Nasdaq in america to new information on Wednesday.
The market worth of chip-making large Nvidia surged previous $3tn final month, briefly holding the highest spot because the world’s most useful firm.
“The AI growth which massively boosted Nvidia can be boosting Samsung’s earnings and certainly these of the whole sector,” Mr Einstein added.
Samsung Electronics is the flagship unit of South Korean conglomerate Samsung Group.
Subsequent week, the tech firm faces a doable three-day strike, which is anticipated to begin on Monday. A union of staff is demanding a extra clear system for bonuses and day without work.
