Samsung’s Q2 profits could surge 13 times amid AI frenzy

July 04, 2024 04:25 AM PDT | By Invezz

Samsung’s Q2 profits could surge 13 times amid AI frenzy — Image source: Invezz

Semiconductor division expected to drive up profits

The rise is being attributed to a consistent improvement in the South Korean tech giant’s semiconductor division as memory chip prices keep rising after seeing a dip between mid-2022 to end-2023 that was caused by weak post-pandemic demand for gadgets that use the chips.

Estimated Q2 operating profit at Samsung’s chip division was 4.6 trillion won according to an average of 10 analysts’ forecasts as against a loss of 4.36 trillion won during the same period last year.

During the second quarter, memory chip prices jumped by about 13% to 18% versus the previous quarter for DRAM chips used in tech devices and 15% to 20% for NAND Flash chips used for data storage, according to data provider TrendForce, reported by Reuters.

Mobile business to likely see shrinkage in operating profit

On the other hand, Samsung’s mobile business division is expected to see its Q2 profit shrink as compared to last year.

The mobile business likely reported an operating profit of around 2.2 trillion won, according to an average of forecasts from 10 analysts, down from a 3.04 trillion won profit a year ago.

The shrinkage was being estimated as even though the company’s deliveries of smartphones remained flat, analysts said higher cost of parts along with higher marketing and development costs for AI services drove up overall costs.

The post Samsung's Q2 profits could surge 13 times amid AI frenzy appeared first on Invezz

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