Joyce Lee
SEOUL (Reuters) – Samsung Electronics Co (KS: ) forecast a 13-fold year-on-year rise in second-quarter profit as demand for artificial intelligence technology drives a rebound in memory chip prices.
The world’s largest maker of memory chips, smartphones and TVs could see its operating profit rise to 8.8 trillion won (6.34 billion) in the quarter ended June 30, according to the average of 27 analysts’ LSEG SmartEstimate. Dollar).
The amount would be Samsung’s highest profit since the third quarter of 2022.
Results from the tech giant’s key semiconductor unit are likely to continue to improve its profits for a second consecutive quarter as memory chip prices continue to rise from a trough in mid-2022 to late 2023 due to post-pandemic concerns over their use. caused by weak demand for equipment.
Analysts say explosive demand for high-end DRAM chips, such as high-bandwidth memory (HBM) chips used in artificial intelligence chipsets and chips used in data center servers and gadgets that run artificial intelligence services, is supporting chips A broad recovery in the industry.
According to data provider TrendForce, in the second quarter, the price of DRAM chips used in technology equipment rose by about 13% to 18% from the previous quarter, and the price of NAND flash memory chips used in data storage rose by 15% to 20%.
According to the average forecast of 10 analysts, Samsung’s chip unit’s second-quarter operating profit is expected to be 4.6 trillion won. This compares with a loss of 4.36 trillion won in the same period last year.
Analysts said operating profit for its mobile business in the second quarter was likely to decline from last year despite similar smartphone shipments due to rising parts costs and higher marketing and development costs for artificial intelligence services.
According to the average forecast of 10 analysts, the mobile business’s operating profit is likely to be about 2.2 trillion won, down from 3.04 trillion won a year ago.
Samsung will unveil its latest flagship foldable phone and mobile accessories on July 10 in Paris, including a new ring for health monitoring, as it is expected to compete with rival Apple Inc (NASDAQ: NASDAQ: ) in the high-end market.
(1 USD = 1,387.4200 Korean Won)
