Samsung hits highest level in three years as AI demand boosts chip business

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At the intersection of technology and retail, Samsung Electronics Co., Ltd. saw its shares hit a three-year high today. The monumental performance was driven by robust and optimistic forecasts for second-quarter profits on the back of a surge in global demand for advanced computer chips, which is also driven by the rise of artificial intelligence within and beyond the technology industry. This marks a significant milestone for the South Korean technology giant, signaling the company's strong recovery and strategic positioning in the rapidly evolving AI environment.

The global AI revolution, particularly generative AI technologies, has fueled this demand. These tools require advanced chips capable of handling complex calculations, and Samsung is well positioned as one of the market's leading suppliers. The AI-driven surge in demand has not only benefited Samsung, it has also propelled other companies in the semiconductor sector to new heights.

Samsung shares rose 3% in Seoul on Friday to close at 87,100 South Korean won (about $63) per share, the highest price for Samsung shares since January 2021 and reflecting investor confidence in the company's second-quarter 2024 profit outlook.

As its AI division continues to expand, Samsung is expected to release a more detailed earnings report at the end of July that will provide further insight into the company's financial performance and strategic outlook. This upcoming report is highly anticipated by investors and industry analysts as it will shed light on the company's ability to maintain momentum and capitalize on growing demand for semiconductors due to AI.

Samsung has already projected second-quarter sales of about 60 trillion won ($43.5 billion) this year, a roughly 25 percent increase over the same period in the second quarter last year.

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