Samsung is anticipating a significant boost in profits for the second quarter of this year, thanks to the ongoing AI boom that is driving the demand for advanced computer chips. The Korean technology giant expects its profits to skyrocket nearly 15-fold compared to the same period last year, reaching an estimated 10.4 trillion won (£5.9 billion) from 670 billion won (£380 million) in the previous year.
This surge in profits is a result of the increasing adoption of AI technologies, which have led to a rise in the prices of advanced computer chips essential for powering AI products. Samsung, known for its semiconductor business, is also a major player in the smartphone, electronics, and home appliances industries.
The company’s semiconductor business, a key revenue generator, is poised to benefit from the continued strong demand for chips as the AI technology trend persists. Samsung recently introduced its latest flagship smartphones, the S24 Series, embedded with AI-powered tools and features. The upcoming launch of its new foldable smartphones, expected to incorporate more AI functionalities, further aligns with the company’s strategy to capitalize on the AI boom.
The current AI surge has propelled US chip-making giant Nvidia to unprecedented market value heights, briefly making it the world’s most valuable company. As the AI landscape evolves, companies like Samsung are strategically positioning themselves to leverage these technological advancements for sustained growth and profitability.
