Samsung Hits Three-Year High as AI Demand Boosts Chip Business

In the realm where technology and retail converge, Samsung Electronics has reached a three-year high in its share value today. This monumental achievement has been driven by a robust and optimistic forecast for its second-quarter profits following a surge in global demand for advanced computer chips. This is also fueled by the rise of artificial intelligence in the tech industry and beyond. This marks a significant milestone for the South Korean tech giant, showcasing its strong recovery and strategic positioning in the rapidly evolving AI landscape.

The global AI revolution, particularly in generative AI technologies, has catalyzed this demand. These tools require advanced chips capable of handling complex computations, positioning Samsung advantageously as one of the leading suppliers in the market. This surge in AI-driven demand has not only benefited Samsung but has also propelled other companies in the semiconductor sector to new heights.

Samsung’s shares in Seoul rose by 3% on Friday, closing at 87,100 Korean won (approximately $63) per share. This is the highest point for Samsung’s stock since January 2021, reflecting investor confidence following the company’s profit guidance for the second quarter of 2024.

As the AI sector continues to expand, Samsung is set to release a more detailed earnings report at the end of July, providing further insights into its financial performance and strategic outlook. This upcoming report will be highly anticipated by investors and industry analysts alike, as it will shed light on the company’s ability to maintain its momentum and capitalize on the ongoing AI-driven demand for semiconductors.

Samsung has already projected that it will generate approximately 60 trillion won ($43.5 billion) in sales revenue for the upcoming second quarter of this year. Such an increase in sales revenue, if achieved, will represent an almost 25% improvement when compared to the same second quarter period of last year.