Samsung expects profits to jump by more than 1,400%
Samsung Electronics projects a 15-fold profit increase in Q2 2024 driven by AI chip demand. Analysts credit AI chip demand in data centers and smartphones. Labor unrest looms over bonus transparency.
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Samsung Electronics expects a significant increase in profits for the second quarter of 2024, with a projected 15-fold jump compared to the same period last year. This surge is attributed to the growing demand for advanced chips driven by the artificial intelligence (AI) boom. The company, known for being a major player in memory chips, smartphones, and televisions, also reported a more than 10-fold increase in profits for the first quarter of the year. Analysts highlight the soaring demand for AI chips in data centers and smartphones as a key factor behind Samsung's optimistic outlook. The market value of chip-making giant Nvidia has also seen a substantial increase due to the AI trend. Despite the positive financial forecast, Samsung Electronics is facing potential labor unrest as a union of workers plans a three-day strike to demand a more transparent bonus and time-off system. The company's performance reflects broader market optimism surrounding AI technologies, which has propelled tech stocks to new records in recent times.
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