Samsung Expects Profits To Jump By More Than 1,400%

Samsung Electronics expects its profits for the three months to June 2024 to jump 15-fold compared to the same period last year.

The announcement pushed Samsung shares up more than 2% during early trading hours in Seoul. I Photo: Samsung

The South Korean tech giant is the world's largest maker of memory chips, smartphones, and televisions, João da Silva reported for BBC News. The announcement pushed Samsung shares up more than 2% during early trading hours in Seoul.

The firm also reported a more than 10-fold jump in its profits for the first three months of this year. In this quarter, it said it is expecting its profit to rise to 10.4 trillion won ($7.54 billion; £5.9 billion), from 670 billion won last year.

That surpasses analysts' forecasts of 8.8 trillion won, according to LSEG SmartEstimate.

"Right now, we are seeing skyrocketing demand for AI chips in data centers and smartphones," said Marc Einstein, chief analyst at Tokyo-based research and advisory firm ITR Corp.

Optimism about AI is one reason for the broader market rally over the last year, which pushed the S&P 500 and the Nasdaq in the US to new records on Wednesday. The market value of chip-making giant Nvidia surged past $3 trillion last month, briefly holding the top spot as the world's most valuable company.