Samsung set to beat already high profit forecasts

STORY: Analysts had already forecast a blockbuster quarter for Samsung, but the company says it’s going to do even better.

On Friday, the tech giant said it expects second-quarter profits to jump more than 15-fold.

That would take profits at the world’s largest maker of memory chips, smartphones and TVs to just over $7.5 billion.

It’s the company’s best result since the third quarter of 2022.

The numbers were driven by explosive demand for AI chips.

That also helped prices for semiconductors to jump.

Industry experts estimate memory chip prices were up as much as a fifth over the period.

Investors now await news on whether Samsung’s latest semiconductors will be approved for supply to AI champion Nvidia.

Sources say they had earlier failed tests over heat and power consumption problems.

There are doubts too over the market for lower-end chips, amid lackluster demand for consumer gadgets.

One analyst said sales of such silicon would determine if the chip recovery can continue into next year.

Samsung shares rose around 2% in early trade Friday following the numbers.

The company will release detailed second-quarter earnings at the end of the month.