Samsung: AI set to drive tech demand
STORY: Samsung is banking on AI.
The tech giant said Tuesday that demand for the technology will drive sales of chips and gadgets over the rest of this year.
That outlook came as the firm reported a ten-fold jump in earnings over the first quarter.
Operating profit hit $4.8 billion, in line with its own estimates.
The company benefited as memory chip sales almost doubled and prices rebounded steeply from a downturn.
That surge put its key semiconductor division back in the black.
Samsung credited the demand created by products like ChatGPT, and said that would remain the case despite worries over the global economy and geopolitical tensions.
The forecast comes after local rival SK Hynix last week posted its best results in nearly two years, and said it expected a full recovery in the semiconductor market.
Rising chip prices also had a downside for Samsung, however.
They ate into margins at its mobile phone unit, sending profits there lower.
That was despite the launch of new flagship models, which have been selling well.
Even so, investors were cheered by the earnings report as a whole, sending shares in the firm over 1.6% higher in early trade.
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