05 July 2024

Samsung expects profits to jump nearly 15-fold thanks to AI boom

05 July 2024

Samsung expects its profits for the second quarter of this year to rise almost 15-fold compared to the same period last year.

The Korean technology giant said it estimates profits for the three months to June to rise to 10.4 trillion won (£5.9 billion), from 670 billion won (£380 million) last year.

It follows a similar jump reported by the firm for the first three months of this year, when it saw a more than 10-fold rise in profits.

The boost in profits and sales is being driven by the boom in artificial intelligence (AI) technologies, which has sparked a rise in the prices of advanced computer chips – needed to power advanced AI products.

Samsung is one of the world’s largest manufacturers of computer memory chips or semiconductors, alongside its huge smartphone, wider electronics and home appliances businesses.

The firm’s semiconductor business is also traditionally the biggest revenue earner for the company, and demand for chips is expected to remain strong in the year to come as the rise of AI technologies continues.

In January, Samsung unveiled its latest flagship range of smartphones, the S24 Series, which came complete with a suite of AI-powered tools and features built in.

The phone maker is expected to unveil its next line-up of foldable smartphones next week as part of a now traditional summer update, with more new AI features expected to be announced.

The AI boom has boosted Samsung’s figures (PA) (PA Wire)

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