Samsung Anticipates Profit Jump After Incorporating AI

Samsung is currently the biggest maker of smartphones, memory chips and televisions. Over the last 12 months, optimism about artificial intelligence (AI) has seen the market rally for these chips grow, with NASDAQ and the S&P 500 hitting new records last week.

Recently, Samsung Electronics announced that it expected its profits from the second quarter of the year to rise by a factor of 15. The company expects that its profits for this quarter will reach 10.4 trillion won, which is equivalent to about $7.5 billion. This greatly exceeds analysts’ forecasts, standing at 8.8. trillion won.

The latest forecast is quite an increase, especially when compared to the 670 billion won reported in the Q1 2023. Following its announcement, the company’s shares went up by more than 2% during early trading hours in Seoul.

The company’s forecast for its second  quarter has primarily been driven by an AI boom that increased the price of AI chips. Overall, memory chip prices around the globe have grown by about one-fifth in the last 12 months.

In its announcement, the South Korean tech giant also reported a significant increase in its profits for the first quarter of the year. In its estimates, Samsung Electronics stated that its operating profits hit 6.6. trillion won, which is equivalent to $4.9 billion. This is 931% higher than the operating profits reported in the first quarter of 2023.

This figure exceeds analysts’ expectations, which stood at roughly 5.7 trillion won.

The company attributed a partial boost in its profits from sales of its flagship Galaxy S24 smartphone, which was rolled out in January.

ITR Corp chief analyst, Marc Einstein, stated that he had observed a significant increase in demand for artificial intelligence chips in smartphones and data centers. Samsung isn’t the only tech giant to make bank on this wave either. Nvidia, an American multinational corporation and tech company, saw its market value exceed $3 trillion in June. At some point, it briefly held the number one spot as the most valuable company globally.

Einstein explained that the artificial intelligence boom which boosted Nvidia was also influencing Samsung’s earnings positively as well as other companies in the sector at large.

Samsung Electronics is Samsung Group’s flagship company. This week, the tech company may face a three-day worker strike; employees will be demanding more time off and a transparent system for bonuses.

Other segments of technology are also seeing companies such as D-Wave Quantum Inc. (NYSE: QBTS) raising the bar in the world of quantum computing, and the possibilities of how this science can be deployed are exciting investors and end users alike.

NOTE TO INVESTORS: The latest news and updates relating to D-Wave Quantum Inc. (NYSE: QBTS) are available in the company’s newsroom at https://ibn.fm/QBTS

About AINewsWire

AINewsWire (“AINW”) is a specialized communications platform with a focus on the latest advancements in artificial intelligence (“AI”), including the technologies, trends and trailblazers driving innovation forward. It is one of 60+ brands within the Dynamic Brand Portfolio @ IBN that delivers: (1) access to a vast network of wire solutions via InvestorWire to efficiently and effectively reach a myriad of target markets, demographics and diverse industries; (2) article and editorial syndication to 5,000+ outlets; (3) enhanced press release enhancement to ensure maximum impact; (4) social media distribution via IBN to millions of social media followers; and (5) a full array of tailored corporate communications solutions. With broad reach and a seasoned team of contributing journalists and writers, AINW is uniquely positioned to best serve private and public companies that want to reach a wide audience of investors, influencers, consumers, journalists, and the general public. By cutting through the overload of information in today’s market, AINW brings its clients unparalleled recognition and brand awareness.

AINW is where breaking news, insightful content and actionable information converge.

To receive SMS alerts from AINewsWire, text “AI” to 888-902-4192 (U.S. Mobile Phones Only)

For more information, please visit www.AINewsWire.com

Please see full terms of use and disclaimers on the AINewsWire website applicable to all content provided by AINW, wherever published or re-published: https://www.AINewsWire.com/Disclaimer

AINewsWire
Los Angeles, CA
www.AINewsWire.com
310.299.1717 Office
Editor@AINewsWire.com

AINewsWire is powered by IBN