The widespread adoption of synthetic intelligence has led to a rise within the demand for superior pc chips.
Samsung Electronics expects its revenue to develop 15 instances within the final three months in comparison with the identical interval final yr.
The rise in synthetic intelligence (AI) has pushed up costs for superior chips, elevating firm forecasts for the second quarter.
The South Korean know-how big is the world’s largest producer of reminiscence chips, smartphones and televisions.
The information revealed that Samsung shares greater than 2% in early buying and selling in Seoul.
The corporate additionally reported greater than 10 instances earnings within the first three months of this yr.
The corporate mentioned it expects revenue to rise to 10.4 billion gained ($7.54 billion) this quarter, up from 670 billion gained final yr.
That beat analysts’ forecasts of 8.8 billion, in keeping with LSEG SmartEstimate.
“Proper now, we’re seeing a rising demand for synthetic intelligence chips in information facilities and smartphones,” mentioned Mark Einstein, a senior analyst at a Tokyo-based analysis and consulting agency. ITR Company.
Optimism about synthetic intelligence is among the causes for a broader market rally over the previous yr, which despatched the S&P 500 and Nasdaq indexes within the US to new data on the finish of June.
The chip big’s market worth topped $3 billion final month, taking the highest spot because the world’s most dear firm.
“The AI growth that fueled a lot of Nvidia can also be fueling earnings for Samsung and the trade as a complete,” Einstein mentioned.
Samsung Electronics is the primary structural unit of the South Korean conglomerate Samsung Group.
The know-how firm is predicted to carry a three-day strike subsequent week, which might begin on Monday. The employees’ union desires a clearer system for granting bonuses and time without work. Nonetheless, it’s not believed that this strike might have a major influence on the worth of Samsung’s shares, not to mention gross sales.
2024-07-07 19:08:10
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