Samsung’s profits are expected to grow 18-fold due to strong demand for memory from AI
As the AI boom continues to pressure memory supply and drive up chip prices, Samsung Electronics. Operational profit is expected to have climbed by almost 18 times in the second quarter, establishing another record compared to the prior year.
According to an LSEG SmartEstimate based on projections from thirty analysts, weighted toward those with the greatest track records. The largest memory chip manufacturer in the world by sales is expected to announce an operating profit of $56,350 million for the April–June quarter on Tuesday.
This would be Samsung’s third straight quarter of record operating profit compared to 4.7 trillion won a year earlier. Indicating a protracted memory shortage as rising demand for AI inference infrastructure continues to exceed supply growth from international memory makers.
As AI applications—particularly agent-based AI—expand to a wider spectrum of computing workloads.This robust growth has been fueled not just by high-bandwidth memory (HBM) but also by growing demand for conventional DRAM and NAND products.
Analysts claim that agent-based AI systems carry out more complicated. Multi-step activities that need for more memory for server processors and larger storage capacity to retain and retrieve data during inference. In contrast to earlier AI applications that were mainly concerned with building huge models.
Major IT firms like Nvidia, Google, and Apple rely heavily on Samsung for their memory chips.
In the second quarter, average selling prices for DRAM and NAND increased by 44% and 53%. Respectively, according to a report released by Citi Research on Thursday.
The chipmaker´s stocks
Chipmakers’ stocks have risen sharply as a result of the ongoing memory scarcity; Samsung Electronics, SK Hynix, and Micron have all seen increases this year of 158%, 273%, and 242%, respectively, pushing their total market value above $1 trillion.
Analysts cautioned that if Samsung sets aside a larger-than-expected provision for staff bonuses during the quarter, second-quarter earnings would not meet consensus projections.
