CONNECT WITH US
Social Media

Social Media

AI chip boom pushes Samsung profits to record $80bn

BBC News – Social Media logo

Published on

Add as a preferred source on Google
AI chip boom pushes Samsung profits to record $80bn

Samsung Electronics says it expects a nine-fold surge in its quarterly profits compared with a year earlier, driven by surging demand for memory chips used in artificial intelligence (AI) data centres.

The tech giant estimates that its operating profit for the three months to the end of September will jump to 107.4tn won (£61bn; $80bn), its fourth quarter in a row of record earnings.

Samsung is one of the world's largest memory chip makers alongside local rival SK Hynix and Micron in the US, which produce chips crucial for AI firms like Nvidia.

Samsung, which makes the Galaxy Fold and S26 smartphones, is also expected to get a boost from its latest folding devices that were launched in August.

The firm's full third-quarter earnings will be released at the end of October.

Major South Korean companies tend to release previews of their earnings to advise investors ahead of more detailed reports.

There has been huge global demand for computer chips that power AI development, helping to lift the earnings and shares of manufacturers linked to the technology.

The surge in demand in recent years has resulted in a shortage of semiconductors globally, pushing up sales for firms like Samsung, with its stock market valuation crossing $1tn (£757bn) earlier this year.

Investment in the industry has surged, with US tech giants including Google, Amazon and Meta pledging to pour more than $650bn into AI projects this year.

In June, South Korea unveiled plans for at least $880bn in projects led by Samsung and SK Hynix to build out the country's chip manufacturing capabilities in the coming years.


Source link
Related Topics:Social Media

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We TheMorningPulse.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It's possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.