Samsung estimated that its second-quarter operating profit rose 15-fold, better than expected. Reuters reported that the company cited rebounding semiconductor prices driven by increased artificial intelligence (AI) development.
The company estimated its operating profit increased from KRW 670 billion ($485.54 million) last year to KRW 10.4 trillion ($7.54 billion) as of June 30.
This meant it also outperformed an LSEG SmartEstimate, which predicted that Samsung would only have a profit increase of KRW 8.8 trillion ($6.38 billion).
It is understood that Samsung replaced the head of its semiconductor business to overcome what it called a "chip crisis."
AI Boom, Chip Prices Play Role in Samsung's Profit Raise
According to analysts, the profit Samsung had reflected the reversal of its previous inventory writedowns on its books as chip inventory values rebounded.
It also profited from the rising demand for semiconductors due to AI's exponential prominence in the general tech industry, especially in high-end DRAM chips like high-bandwidth memory (HBM) chips, as well as chips used in data center servers and gadgets running AI services.
However, the climb might slow by the third quarter. TrendForce forecasted a 5% to 10% price increase for conventional DRAM and NAND Flash chips as demand for legacy counterparts from consumer electronics remained red.
Meanwhile, GSMArena reported that there is confirmation of Samsung's new Galaxy Buds3 featuring a new stem design.
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