Samsung Electronics is expected to see a 13-fold increase in its second-quarter profit, driven by rising memory chip prices due to demand for artificial intelligence technology.
According to an average forecast by 27 analysts in the LSEG SmartEstimate, the world's largest memory chip, smartphone, and TV manufacturer, Samsung Electronics, is likely to see its operating profit rise to 8.8 trillion won (approximately $6.34 billion) in the quarter ending June 30, indicating more accurate predictions from these analysts.
This amount would mark Samsung's highest profit since the third quarter of 2022, compared to an operating profit of 670 billion won in the second quarter of last year.
The performance of the tech giant's crucial semiconductor division is likely to see profitability for the second consecutive quarter as memory chip prices gradually recover from their lows between mid-2022 and the end of 2023.
Analysts state that strong demand for high-end DRAM chips, such as high-bandwidth memory chips used in AI chipsets, and devices for data center servers and AI services, is supporting a full-scale recovery in the chip industry.
According to data provider TrendForce, prices for DRAM chips used in tech devices rose by about 13% to 18% in the second quarter compared to the previous quarter, while prices for NAND Flash chips used for data storage saw an increase of 15% to 20%.
Based on the average forecast of 10 analysts, Samsung's chip division is expected to post an operating profit of 4.6 trillion won in the second quarter, compared to a loss of 4.36 trillion won in the same period last year.
