On Friday, Samsung Electronics’ stock price increased as estimates for its second-quarter operating profit rose, driven by the artificial intelligence (AI) boom.
Its share price jumped by 1.89% to $86,200.00 ($26.27) apiece on July 05. Rebounding semiconductor prices accelerated the AI, lifting earnings from low levels a year ago.
Moreover, Samsung anticipated its operating profits to improve to $7.54 billion by the June 30 quarter end.
The smartphone maker’s shares rose by 1.20% after the guidance, compared to the 0.40% rise in the wider market.
Adding to higher chip prices, the better-than-expected earnings likely showed the tech company’s reversal of its previous inventory.
According to the company, revenue is most likely to improve by 23.00% in the second quarter compared to last year.
Artificial intelligence boosted the chip demand sector over the past year. This was driven by a rising number of firms chasing the market share from majors, like OpenAI, with their offerings.
Also, Samsung’s device sales, mainly from its flagship S-series smartphones, benefited from AI integration.
Significant demand for high bandwidth memory (HBM) chips and those used in data center servers and gadgets running AI services helped lift chip prices.
HMB Launched by Samsung for Advanced Chip Team
Samsung Electronics has officially rolled out a team to develop advanced high-bandwidth memory for AI devices.
Moreover, the company launched another team to handle advanced chip packaging. It would combine HBM chips with the graphics processing unit for AI chip accelerators.
Both teams are part of Samsung’s organizational revamp. It marks the company’s first reshuffle since Vice Chairman Jun Young-Hyun ran its Device Solutions division, overseeing the chip business.
Previously, the two teams were placed under the memory department’s DRAM development sector.
In addition, HBM became a vital part of the AI boom because it offers faster processing speed than traditional memory chips.
