Samsung Electronics Co. has unveiled a 15-fold surge in operating profit for the second quarter, attributing the rise to a booming demand for memory chips fuelled by artificial intelligence technology.
The Seoul-headquartered chipmaker and smartphone leader disclosed Wednesday that it brought in an operating profit of 10.4 trillion won ($7.5billion) for the months of April through June, soaring from 670 billion won in the same span last year. Unveiling a roughly 23% climb in consolidated sales to 74 trillion won ($53billion), Samsung pinpointed the windfall to a favourable market climate pumping up average sales figures, alongside stellar turnover from their organic light-emitting diode (OLED) screen panels.
“Driven by strong demand for HBM (high bandwidth memory) as well as conventional DRAM and server SSDs (solid state drives), the memory market as a whole continued its recovery,” said the company.
“This increased demand is a result of the continued AI investments by cloud service providers and growing demand for AI from businesses for their on-premise servers,” the tech giant stated.
Looking ahead to the later half of the year, Samsung predicts that AI servers are poised to carve out a larger market share as major cloud firms and corporations double down on their AI ventures.
