Samsung’s profit jumps as AI drives recovery in memory chips
- The results underscore how the US$160 billion memory market is bouncing back this year, buoyed by a boom in data centres and AI development
The world’s largest maker of memory chips and smartphones said operating profit grew more than 15-fold to 10.4 trillion won (US$7.5 billion) in its preliminary results for the June quarter, outstripping market projections.
Sales grew around 23 per cent, the biggest rise since Covid-era highs clocked in 2021. Samsung is slated to announce final earnings with divisional breakdowns on July 31.
Samsung’s stock gained 1.7 per cent during early morning trade in Seoul on Friday.
The results underscore how the US$160 billion memory market is bouncing back this year from a severe post-Covid downturn, driven by a boom in data centres and AI development.
That demand pushed average memory chip prices 15 per cent higher from the previous quarter, CLSA estimates, helping Samsung’s largest division reverse year-earlier losses.
Both DRAM and NAND prices were lifted by demand for AI servers and enterprise data storage, helping to reverse inventory valuation losses, said Sanjeev Rana, an analyst at CLSA Securities Korea. Samsung’s foundry, or contract chip-making, operations also got a boost from improved IT demand, he said.