Samsung Electronics, the global technology giant, is poised for a remarkable surge in profits during the second quarter of 2024, thanks to a significant boost from the artificial intelligence (AI) frenzy. The company anticipates a 15-fold increase in profits compared to the same period last year, driven by the rising costs of cutting-edge chips[1].
As a leader in memory chips, smartphones, and televisions, Samsung has witnessed a substantial increase in demand for AI chips in data centers and smartphones[1]. This surge in demand has been a key driver of the recent market upswing, propelling the S&P 500 and the Nasdaq to unprecedented highs in the United States[1]. Nvidia, a prominent chip manufacturer, briefly held the title of the world's most valuable company last month, with its market value exceeding $3tn[1].
The AI surge that significantly bolstered Nvidia is now also contributing to Samsung's earnings and those of the entire sector[1]. For the initial three months of this year, Samsung foresees its profits escalating to 10.tn won ($.54bn £5.9bn), a substantial rise from 670bn won recorded last year, surpassing analysts' predictions[1].
Despite the positive outlook, Samsung Electronics faces a potential three-day strike scheduled to commence on Monday, with the labor union advocating for a more transparent framework concerning bonuses and time off for the employees[1].
Citations:
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https://groups.google.com/g/maxshirt5/c/N_RVXB7mZnk
https://groups.google.com/g/maxshirt5/c/N_RVXB7mZnk
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