Trends

Samsung’s profit soars 1,500% amid AI-driven chip demand

AuthorDoris Du

Reading Time2 min

PublishedJuly 5, 2024

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OUR TAKE The recent surge in Samsung’s profits, driven by the AI boom, reflects a broader trend of technological integration reshaping industries. This development is both exciting and a reminder of the relentless pace of innovation that continues to shape our world. While the economic benefits are clear, it’s essential to remain vigilant about the ethical and societal impacts of such rapid technological change . –Doris Du, BTW reporter Samsung Electronics has announced a staggering more than 15-fold increase in its second-quarter operating profit in Seoul on July 5 – driven by the surging demand for semiconductors fuelled by the AI boom.

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Analysis

The world’s leading memory chip, smartphone, and TV manufacturer estimated its operating profit reached 10.4 trillion won ($7.54 billion) for the quarter ending June 30, a significant rise from 670 billion won a year earlier. This profit exceeded the 8.8 trillion won forecasted by LSEG SmartEstimate, making it the most profitable quarter for Samsung since Q3 2022. Revenue for the quarter likely rose by 23% compared to the same period last year, reaching 74 trillion won, as reported by Samsung. Following this announcement, Samsung shares opened up 1.2%, outperforming the broader market’s 0.4% rise. Also read: Samsung Galaxy Z Flip 6 and Z Fold 6 product pages are leaked Also read: Samsung unveils SmartThings Pro for businesses