Samsung reports higher profits than expected due to increased demand and higher chip prices driven by AI technology. By Reuters

Samsung Electronics reported a significant increase in its second-quarter operating profit, with estimates showing a more than 15-fold rise compared to the same period last year. The company’s profit surged to 10.4 trillion won ($7.54 billion) from 670 billion won in the previous year, surpassing expectations. This growth was largely driven by higher semiconductor prices, especially in demand for AI-related chips. The company’s revenue is also predicted to have risen by 23% to 74 trillion won. Samsung’s semiconductor division is expected to continue its profitability streak, fueled by the strong demand for memory chips used in AI technology. However, concerns about a potential slowdown in chip price increases in the third quarter linger. Investors are eager to hear Samsung’s outlook on legacy chips and the supply of high-end chips to companies like Nvidia. The company’s stock performance has been positive, increasing by 8% year-to-date.