Samsung Electronics Co. has released its second-quarter financial report, revealing a significant 15-fold increase in operating profit compared to the same period last year. This substantial growth, reaching 10.4 trillion won ($7.5 billion), is credited to a surge in demand for memory chips due to the expansion of artificial intelligence technologies.
The South Korean tech giant also disclosed that its consolidated revenues rose by approximately 23%, amounting to 74 trillion won ($53 billion) in the April-June quarter. This uptick in revenues was supported by favorable market conditions leading to higher average sales prices. Additionally, the robust sales of organic light-emitting diode (OLED) panels made a significant contribution to Samsung’s strong performance.
A statement from Samsung highlighted that the memory market saw a boost in demand, particularly for High Bandwidth Memory (HBM), DRAM, and server SSDs. The company attributed this increased demand to the ongoing investments in artificial intelligence by cloud service providers and the growing AI requirements from businesses for their on-premise servers.
Looking forward to the second half of the year, Samsung anticipates that AI servers will become a more prominent segment in the market as cloud service providers and enterprises continue to expand their investments in artificial intelligence technologies.
