Samsung earned 13 times more in the second quarter thanks to AI hype

Samsung Electronics announced a 13-fold year-over-year increase in Q2 2024 earnings. The company’s operating profit for the period is expected to reach 8.8 trillion won ($6.34 billion), the highest since the third quarter of 2022.

The main contributor to this rapid growth was the recovery of Samsung’s semiconductor segment. The division’s operating profit for the second quarter will be 4.6 trillion won, compared with a loss of 4.36 trillion won in the same period last year. Demand for DRAM and NAND Flash chips used in artificial intelligence (AI) has increased significantly, driving prices up by 13-20%.

Samsung’s mobile business, however, suffered a drop in profits due to rising costs for parts and marketing, as well as investment in the development of AI services. The number of smartphones sold remained at the same level as last year.

On July 10, the company plans to introduce its latest flagship smartphones, the Galaxy Fold 6 and Galaxy Flip 6, as well as a health monitoring ring that should compete with Apple’s products in the high-end gadget market.

Analysts predict that Samsung’s total operating profit for the second quarter will be from 8.547 trillion. up to 8.8 trillion The company will publish a detailed profit report at the end of the month.