{"id":25884,"date":"2024-07-05T12:20:05","date_gmt":"2024-07-05T12:20:05","guid":{"rendered":"http:\/\/108001807"},"modified":"2024-07-05T12:20:05","modified_gmt":"2024-07-05T12:20:05","slug":"samsung-shares-hit-over-3-year-high-after-better-than-expected-guidance-on-strong-ai-demand","status":"publish","type":"post","link":"https:\/\/wp.worldtechguide.net\/samsung-shares-hit-over-3-year-high-after-better-than-expected-guidance-on-strong-ai-demand\/","title":{"rendered":"Samsung shares hit over 3-year high after better-than-expected guidance on strong AI demand"},"content":{"rendered":"

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The Samsung logo is on display at their pavilion during the Mobile World Congress in Barcelona, Spain, on February 28, 2024. (Photo by Joan Cros\/NurPhoto via Getty Images)<\/p>\n

Nurphoto | Nurphoto | Getty Images<\/p>\n<\/div>\n<\/div>\n<\/div>\n

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Shares of Samsung Electronics jumped to their highest level since January 2021 after the South Korean tech giant said it expects better-than-expected profit for the second-quarter, <\/span>thanks to explosive demand for artificial intelligence.<\/p>\n

The stock climbed as much as 2.24% on Friday morning, trading at a high of 86,500 Korean won ($62.73), according to LSEG data. Samsung shares closed at 84,600 won on Thursday.<\/p>\n

Samsung issued guidance on Friday, saying operating profit for the April to June quarter is projected to be about 10.4 trillion won ($7.54 billion) \u2014 that’s a jump of about 1,452% from 670 billion won a year ago<\/span>. The expected operating profit beat a LSEG estimate of 8.51 trillion won.<\/p>\n

The firm also said it expects revenue for the second quarter to be between 73 trillion to 75 trillion won, from 60.01 trillion won a year ago<\/span>. This is in line with the 73.7 trillion won estimated by LSEG analysts.<\/p>\n

Business for the world’s largest memory chip maker rebounded as memory chip prices recovered on AI optimism<\/span> last year. The South Korean electronics giant saw record losses in 2023 as the industry reeled from a post-Covid slump in demand for memory chips and electronics.<\/p>\n

Its memory chips are commonly found in a wide range of consumer devices including smartphones and computers.<\/p>\n<\/div>\n

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Samsung said in April <\/span>it expects the second quarter to be driven mostly by demand for generative AI, while mobile demand remains stable.<\/p>\n

The South Korean tech giant has gone big on generative AI<\/span> with its Galaxy S24 Ultra smartphone, which comes with features for editing photos and searching for items online by using AI.<\/p>\n

“Samsung announces earnings surprise but mainly the earnings upside is from memory price high. So ironically, Samsung is lagging behind in HBM (high-bandwidth memory) production. So supply to Nvidia \u2013the qualification \u2013 has been delayed,” SK Kim, executive director of Daiwa Capital Markets, told CNBC’s “Street Signs Asia” on Friday.<\/p>\n<\/div>\n

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HBM chips are advanced memory chips crucial for AI chipsets \u2013 which have seen a huge demand thanks to the AI boom. This has largely benefitted firms such Samsung Electronics and SK Hynix, the top two memory chipmakers in the world.<\/p>\n

Reuters in May reported that Samsung has yet to qualify for use<\/span> in Nvidia’s AI processors, as Nvidia is said to be <\/span>considering Samsung as a potential supplier of HBM chips. Samsung refuted the report<\/span>, saying the tests with several partners for HBM supply are “on track.”<\/p>\n

“But despite the delay, the company announces earning surprise is driven by the memory price high,” said Kim.<\/p>\n

“So although they are delayed in the HBM \u2013 most advanced memory product \u2013 they enjoy the benefit from their number one capacity, market share so they maximize the profit with a higher ASP (average selling price).”<\/p>\n

Samsung is set to release detailed second-quarter results later this month.<\/p>\n

\u2013 CNBC’s Lim Hui Jie contributed to this report.<\/em><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

The Samsung logo is on display at their pavilion during the Mobile World Congress in Barcelona, Spain, on February 28, 2024. (Photo by Joan Cros\/NurPhoto via Getty Images) Nurphoto | Nurphoto | Getty Images Shares of Samsung Electronics jumped to their highest level since January 2021 after the South Korean tech giant said it expects …<\/p>\n","protected":false},"author":1,"featured_media":25885,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[],"hashtags":[],"class_list":["post-25884","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-tech","has-thumb","has-featured"],"_links":{"self":[{"href":"https:\/\/wp.worldtechguide.net\/wp-json\/wp\/v2\/posts\/25884"}],"collection":[{"href":"https:\/\/wp.worldtechguide.net\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/wp.worldtechguide.net\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/wp.worldtechguide.net\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/wp.worldtechguide.net\/wp-json\/wp\/v2\/comments?post=25884"}],"version-history":[{"count":0,"href":"https:\/\/wp.worldtechguide.net\/wp-json\/wp\/v2\/posts\/25884\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/wp.worldtechguide.net\/wp-json\/wp\/v2\/media\/25885"}],"wp:attachment":[{"href":"https:\/\/wp.worldtechguide.net\/wp-json\/wp\/v2\/media?parent=25884"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/wp.worldtechguide.net\/wp-json\/wp\/v2\/categories?post=25884"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/wp.worldtechguide.net\/wp-json\/wp\/v2\/tags?post=25884"},{"taxonomy":"hashtags","embeddable":true,"href":"https:\/\/wp.worldtechguide.net\/wp-json\/wp\/v2\/hashtags?post=25884"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}