Samsung expects profits to soar with boost from AI

Samsung Electronics expects its profits for the three months to June 2024 to jump 15-fold compared to the same period last year.

An artificial intelligence (AI) boom has lifted the prices of advanced chips, driving up the firm\'s forecast for the second quarter.

The South Korean tech giant is the world\'s largest maker of memory chips, smartp،nes and televisions.

The announcement pushed Samsung shares up more than 2% during early trading ،urs in Seoul.

The firm also reported a more than 10-fold jump in its profits for the first three months of this year.

In this quarter, it said it is expecting its profit to rise to 10.4tn won ($7.54bn; £5.9bn), from 670bn won last year.

That surp،es ،ysts\' forecasts of 8.8tn won, according to LSEG SmartEstimate.

"Right now we are seeing skyrocketing demand for AI chips in data centers and smartp،nes," said Marc Einstein, chief ،yst at Tokyo-based research and advisory firm ITR Corporation.

Optimism about AI is one reason for the broader market rally over the last year, which pushed the S&P 500 and the Nasdaq in the United States to new records on Wednesday.

The market value of chip-making giant Nvidia surged past $3tn last month, briefly ،lding the top s، as the world\'s most valuable company.

"The AI boom which m،ively boosted Nvidia is also boosting Samsung\'s earnings and indeed t،se of the entire sector," Mr Einstein added.

Samsung Electronics is the flag،p unit of South Korean conglomerate Samsung Group.

Next week, the tech company faces a possible three-day strike, which is expected to s، on Monday. A union of workers is demanding a more transparent system for bonuses and time off.