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 synthetic intelligence (AI) growth has lifted the costs of superior chips, driving up the agency’s forecast for the second quarter.
The South Korean tech big 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 leap 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 received ($7.54bn; £5.9bn), from 670bn received final yr.
That surpasses analysts’ forecasts of 8.8tn received, in response to 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 over the past yr, which pushed the S&P 500 and the Nasdaq in the USA to new data on Wednesday.
The market worth of chip-making big Nvidia surged previous $3tn final month, briefly holding the highest spot because the world’s Most worthy firm.
“The AI growth which massively boosted Nvidia can also 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 potential three-day strike, which is anticipated to begin on Monday. A union of employees is demanding a extra clear system for bonuses and time without work.
