Samsung forecasts 89 trillion won in Q2 operating profit, a 19-fold jump, as AI memory chip demand pushes prices higher and supplies remain tight.
Samsung Electronics said it expects operating profit to jump roughly 19-fold in the second quarter, driven by the global scramble for AI memory chips.
The South Korean company forecast operating profit of 89 trillion won ($58 billion) for the April-to-June period, its third consecutive record quarterly profit. Sales came in around 171 trillion won, more than double the same quarter last year, Samsung said in its earnings guidance released Tuesday.
The projection is "one of the best quarterly performances ever," said Marc Einstein, an industry analyst at Counterpoint Research. It approaches the tech sector record Nvidia set earlier this year, he noted.
"This has everything to do with the AI boom as memory companies continue to ride a tidal wave driven by limited supply and unprecedented demand," Einstein added.
Samsung is one of the world's largest semiconductor manufacturers, supplying chips to Nvidia and Google. The company's shares have more than doubled since January. Rival SK Hynix has jumped more than 200% over the same period.
The strong performance of both firms has lifted South Korea's benchmark Kospi index by more than 80% this year.
Samsung's full results are due later in July. The company's NVDA stock page shows an Alpha Score of 68/100, a Moderate label, with shares currently at $195.55, up 0.37% on the day.
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