Samsung Electronics outperformed analysts’ expectations in the second quarter of the current year, reporting higher revenue and operating profit. The company’s revenue stood at 74.07 trillion Korean won, surpassing the estimated 73.74 trillion Korean won, while operating profit reached 10.44 trillion Korean won compared to the expected 9.53 trillion Korean won.
Compared to the same period a year ago, Samsung’s second-quarter revenue increased by 23.42%, while operating profit witnessed a significant surge of 1,458.2%. The company attributed this strong performance to substantial demand for advanced memory chips essential for artificial intelligence training.
Samsung highlighted that the robust demand for high-bandwidth and regular dynamic random access memory chips from customers intensifying their investments in AI technologies contributed to its impressive results. Looking ahead to the second half of the year, Samsung anticipates continued strong demand for server AI, particularly for products like HBM, server DRAM, and SSD.
During the earnings call, Samsung revealed plans to meet the AI demand by ramping up sales of its latest AI memory product, HBM3E, through capacity expansion in the latter half of the year. CLSA, in a recent report, projected that Samsung Electronics would experience quarterly sequential profit growth until 2025, driven by the anticipated upward trend in memory prices.
The recovery in memory chip prices driven by optimism in AI technology led to a resurgence in business for Samsung, the world’s largest memory chip maker, after facing record losses in 2023 due to reduced demand amid the post-Covid economic downturn.
