Samsung Soars To Three-Year High As AI Boom Bolsters Chip Business
What caused Samsung's shares to reach a three-year high?
Samsung's shares reached a three-year high due to a 15-fold increase in its second quarter operating profit from the same time last year, as the global artificial intelligence boom buoys demand for advanced computer chips. The company expects to make around 10.4 trillion Korean won in profit for the second quarter of 2024, up from 670 billion won a year earlier, smashing analysts' expectations.
How much did Samsung's shares increase by on Friday?
Samsung shares climbed 3% on Friday, reaching 87,100 Korean won per share (around $63) at market close. This marks the highest peak for Samsung Electronics shares since early January 2021 and comes after the company issued profit guidance for the second quarter of this year.
What is Samsung's second quarter operating profit forecast for 2024?
Samsung's second quarter operating profit forecast for 2024 is approximately 10.4 trillion Korean won ($7.54 billion), a significant increase from 670 billion won a year earlier5. This forecast marks a 15-fold increase from the same period last year and beats analysts' expectations. The strong performance is likely due to high demand for advanced computer chips amidst the global AI boom.