Samsung Expects 19-Fold Surge in Quarterly Profit on AI Demand

South Korean tech giant Samsung Electronics has forecast that its operating profit for the second quarter of this year will surge approximately 19-fold compared to the same period last year, driven by supply tightness in the semiconductor sector due to rising demand for artificial intelligence (AI) applications. The company attributed this growth primarily to demand for high-bandwidth memory (HBM) and other advanced chip products. According to Samsung's estimates, operating profit for the April-June period will reach 10.4 trillion South Korean won (approximately $7.5 billion), a dramatic increase from the 670 billion won recorded in the same period last year. The company's sales revenue is expected to rise 23% year-on-year to 74 trillion won. The rapid expansion of AI-focused data centers and cloud computing services has fueled a surge in demand for memory chips in the semiconductor sector. Samsung is ramping up production capacity to meet this demand, focusing particularly on high-performance memory solutions optimized for AI workloads. The company continues to invest in R&D to maintain its leading position in this area. Analysts note that Samsung's strong performance aligns with signs of recovery in the global chip market. However, they warn that geopolitical risks and macroeconomic uncertainties could affect demand in the coming period. The company will release its full quarterly results at the end of the month. This is not investment advice.