What happens when the global AI boom collides with a shortage of cutting-edge chips?
For Samsung, it translates into record-breaking profits.
The South Korean tech giant expects operating profit to soar 19-fold to 89.4 trillion won ($58.4 billion) for the April-to-June quarter.
It would mark its third consecutive record performance.
Sales are also projected to more than double to about 171 trillion won.
They are fueled by relentless demand for AI memory chips that continues to outpace supply.
Industry experts say the AI revolution is rewriting the rules.
Profits Soar on AI Boom
Counterpoint Research analyst Marc Einstein described Samsung’s results as “one of the best quarterly performances ever.”
He added, “This has everything to do with the AI boom as memory companies continue to ride a tidal wave driven by limited supply and unprecedented demand.”
That demand has allowed Samsung to raise memory chip prices, while AI data centres continue to consume huge volumes of semiconductors.
IDC analyst Bryan Ma noted that demand has been “different from anything the memory industry has navigated.”
He predicted tight supplies will likely continue into next year.
Despite the stellar numbers, Samsung’s shares slipped as investors had expected even bigger profits.
One thing is certain: in the AI era, semiconductors have become the new gold—and the companies making them are reaping the rewards.
