Samsung Electronics, the South Korean tech giant, has reported better-than-expected profit projections for the second quarter of 2024, leading to a surge in its stock price. The company anticipates an operating profit of about 10.4 trillion won ($7.54 billion), marking a significant increase from the previous year. This growth is attributed to the strong demand for artificial intelligence, which has driven a rebound in the global memory chip market. Samsung's memory chip division, which saw a return to profitability in the first quarter, is expected to have significantly contributed to this surge in operating income, with DRAM and NAND prices steadily climbing. The company's smartphone business unit is also expected to have made a substantial contribution to the operating income. The positive outlook for Samsung is further bolstered by expectations of continued strong demand for high-bandwidth memory (HBM) and an upcoming deal with Nvidia. This performance marks Samsung's best in two years and is a significant turnaround from the challenges faced in 2023. The company is set to unveil new foldable devices and is planning to start mass production of HBM3E in the third quarter, indicating a promising outlook for the future.
