Samsung Electronics has reported a significant increase in revenue and operating profit for the second quarter, exceeding analysts’ expectations. The company’s revenue jumped 23.42% from the same period last year, reaching 74.07 trillion Korean won (approximately $53.45 billion). Operating profit soared 1,458.2% to 10.44 trillion Korean won.
STRONG DEMAND FOR MEMORY CHIPS
The strong performance was driven by robust demand for Samsung’s advanced memory chips, which are crucial for artificial intelligence computing. The company saw increased sales of high-bandwidth memory (HBM) and conventional memory chips, such as dynamic random access memory (DRAM).
AI DEMAND DRIVES GROWTH
Samsung expects demand for AI-related memory chips to remain strong in the second half of the year, driven by expanding capacity to meet demand for HBM and server DRAM. The company plans to address this demand by expanding sales of its latest AI memory product, HBM3E, and solid-state drives (SSDs).
DIVIDEND PAYOUT
Samsung announced a dividend payout of 361 won per common and preferred share for the second quarter, totaling approximately 2.45 trillion won.
SHARE PRICE INCREASE
Samsung’s shares rose as much as 1.35% following the earnings announcement.
ANALYST INSIGHTS
Analysts expect Samsung’s memory chip business to continue driving growth, with prices expected to rise due to robust demand and supply constraints.
