Investing.com–Samsung Electronics (KS:) reported a sharp rise in second-quarter profit as the tech conglomerate continues to benefit from artificial intelligence (AI)-driven demand for memory chips and electronic devices.
Samsung said on Friday it expects its operating profit for the three months ended June 30 to rise to 10.4 trillion won ($7.5 billion) from 670 billion won a year earlier.
The figure far exceeded a Reuters forecast of 8.8 trillion won.
Samsung said it expects second-quarter sales to rise to 74 trillion won, up from 60.01 trillion won a year ago. The electronics giant only released a provisional forecast for its second-quarter profit on Friday and is due to announce its overall profit in late July.
But Samsung's revenue growth is due to rising demand for memory chips, especially high-bandwidth memory chips, from the AI industry. Samsung said it will begin mass production of advanced HBM chips this year with an eye on increasing orders from AI darling NVIDIA Corporation (NASDAQ:).
AI has helped boost demand in the chip industry over the past year, with more companies vying to grab market share with their products from larger companies like OpenAI.
Samsung's device sales, especially its flagship S-series smartphones, have also benefited from AI integration.
