Samsung expects earnings to soar with increase from AI | EUROtoday

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Samsung Electronics expects its earnings for the three months to June 2024 to leap 15-fold in comparison with the identical interval final yr.

An 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 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.

In 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, based on LSEG SmartEstimate.

“Right now we are seeing skyrocketing demand for AI chips in data centers and smartphones,” stated Marc Einstein, chief analyst at Tokyo-based analysis and advisory agency ITR Corporation.

Optimism about AI is one cause for the broader market rally over the past yr, which pushed the S&P 500 and the Nasdaq within the United States 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 worthy firm.

“The AI boom which massively boosted Nvidia is also boosting Samsung’s earnings and indeed those of the entire sector,” Mr Einstein added.

Samsung Electronics is the flagship unit of South Korean conglomerate Samsung Group.

Next week, the tech firm faces a attainable 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.