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The Markets
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Tech

Samsung Electronics expects 15-fold profit increase amid AI boom

Samsung Electronics (KRX:005930) has flagged that its second-quarter operating profit will surge almost 15-fold from the same period in 2023.

Operating profit is tipped to close at 10.4 trillion Korean won (£5.9 billion) compared to less than 700 billion won (£396 million) last year.

2024 is “set to become the best year ever (for Samsung) as the AI boom is lifting all boats in the semiconductor industry,” said Saxo analysts.

As well as making consumer electronics, Seoul-based Samsung is the second-largest manufacturer of semiconductors, or microchips, in the world, behind only the Taiwan Semiconductor Manufacturing Company.

Chip demand has skyrocketed since the artificial intelligence boom went into overdrive, causing valuations among chipmakers and adjacent companies to similarly skyrocket.

TSMC and microchip machinery supplier ASML recently touched all-time highs, while Samsung today touched a 30-month high.

Samsung’s second-quarter results will be published in full on 31 July.

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